Question

Pencils are sold in a local store for 65 cents each. The factory has $1400 in fixed costs plus 15 cents of additional expense for each pencil made. Assuming all pencils manufactured can be sold, find the break-even point.

Answer 1

Answer:

Break even occurs at 2800 PENCILS

Step-by-step explanation:

Fixed cost form the factor = $1400

Variable cost per unit pencils = 15 cents = $0.15

Let number of pencils produced to get brek even point = x

Then total cost = c(x)= 1400+0.15x

Selling price per unit juice box = 65 cents = $0.65

Then total sales = R(x)= 0.65x

At break even both sales and cost will be equal so we get: