Question

A guitar factory has a cost of production C(x)=65x+42500. If the company needs to break even...

A guitar factory has a cost of production C(x)=65x+42500. If the company needs to break even after 150 units sold, at what price should they sell each guitar? (Enter dollar amount , use "$")

0 0
Add a comment Improve this question Transcribed image text
Answer #1

C(x)=65x+42500

R(x) =150x

At break even.

R(x)=C(x)

150x=65x+42500

150x-65x =42500

85x =42500

x =500

price should they sell each guitar is $500

Add a comment
Know the answer?
Add Answer to:
A guitar factory has a cost of production C(x)=65x+42500. If the company needs to break even...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Break-Even Point in Units Chillmax Company plans to sell 3,500 pairs of shoes at $60 each...

    Break-Even Point in Units Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Chillmax must make to break even by using the break-even point in sales equation. $ 2. Prepare a contribution margin income statement...

  • Break-Even Point in Units Head-First Company plans to sell 5,000 bicycle helmets at $71 each in...

    Break-Even Point in Units Head-First Company plans to sell 5,000 bicycle helmets at $71 each in the coming year. Unit variable cost is $48 (includes direct materials, direct labour, variable factory overhead, and variable selling expense). Total fixed cost equals $44,390 (includes fixed factory overhead and fixed selling and administrative expense) Required: 1. Calculate the break-even number of helmets. If required, round your answer to the nearest whole unit and use rounded amount in subsequent requirements. helmets 2. Check your...

  • Break-Even Point in Units Head-First Company plans to sell 5,000 bicycle helmets at $75 each in...

    Break-Even Point in Units Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $48 (includes direct materials, direct labour, variable factory overhead, and variable selling expense). Total fixed cost equals $69,390 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the break-even number of helmets. If required, round your answer to the nearest whole unit and use rounded amount in subsequent requirements. helmets 2. Check your...

  • Required: 1. At the break-even point, Jefferson Company sells 105,000 units and has fixed cost of...

    Required: 1. At the break-even point, Jefferson Company sells 105,000 units and has fixed cost of $345,400. The variable cost per unit is $0.40. What price does Jefferson charge per unit? Note: Round to the nearest cent. s 2. Sooner Industries charges a price of $100 and has fixed cost of $498,000. Next year, Sooner expects to sell 19,700 units and make operating income of $169,000. What is the variable cost per unit? What is the contribution margin ratio? Note:...

  • The point at which a company cost equals its revenue is its break even point. C...

    The point at which a company cost equals its revenue is its break even point. C represents the cost, in dollars of of x units of a product abd R represents the revenue in dollars from the sale of x units. Find the number of units that must be produced and sold in order to break even. That is find the value of x for which C=R. C=13x+42,000 and R = 16x. How many units must be produced and sold...

  • Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal....

    Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a profit. When a company decides that it wants to earn more than the break-even point of income, it must define the amount it thinks it will realistically make. By modifying the break-even equation, the sales required to earn a target or desired amount of profit may be computed. Complete the following: If a company...

  • Break-Even Analysis A multimedia company produces DVDs. It estimates their cost function to be: C(x) =...

    Break-Even AnalysisA multimedia company produces DVDs. It estimates their cost function to be:C(x)=13.2 x+48,038The DVD is sold to retail outlets and the revenue function is:R(x)=16.61 xBoth C(x) and R(x) are in dollars and x= number of DVDs manufactured and sold.How many DVDs must be manufactured and sold in order for the company to break even? (Round to the nearest whole number).Equilibrium AnalysisSuppose that the demand function and supply function for honey are P=D(q)=-1.3 q+23 andP=S(q)=0.5 q+2.9where P is the price...

  • Basic Break-Even Calculations Suppose that Adams Company sells a product for $22.00. Unit costs are as...

    Basic Break-Even Calculations Suppose that Adams Company sells a product for $22.00. Unit costs are as follows: Direct materials $3.80 Direct labour 1.40 Variable factory overhead 2.30 Variable selling and administrative expense 1.40 Total fixed factory overhead is $74,840 per year, and total fixed selling and administrative expense is $54,195. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. Round your answers to the nearest cent and use rounded amounts in subsequent requirements. Variable cost...

  • break even point and balance sheet Freak-Even Point in Units Instructions Instructions Head-First Company plans to...

    break even point and balance sheet Freak-Even Point in Units Instructions Instructions Head-First Company plans to sell 5,200 bicycle helmets at $80 each in the coming year. Unit variable cost is $47 (includes direct materials, direct labor, variable factory overhead, and variable selling expense) Total fixed cost equals $55,440 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the break-even nuraber of helmets. 2. Check your answer by preparing a contribution margin income statement based on...

  • Break Even = BE             Cost of ...

    Break Even = BE             Cost of Goods Sold Per Unit = CGS             Operating Expenses = OE             Price = P Gross Margin Per Unit = GM *This number represents the amount of money per unit that can be used to contribute to cover fixed costs and add to profit.             BE = OE / (P-CGS)             GM = (P-CGS)                          Use this formula to check your answers Revenue = Expenses Revenue = (PRICE * Quantity) Expenses = (Fixed Costs + (CGS * Quantity) ------------------------------------------------------------------------------------------------------------...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT