mall plant manufactures riding lawn mowers. The plant has fixed costs (leases, insurance, and so on) of $24,000 per day and variable costs (labor, materials, and so on) of $1,200 per unit produced. The mowers are sold for $1,500 each. The cost and revenue equations are shown below where x is the total number of mowers produced and sold each day and the daily costs and revenue are in dollar y=24000 + 1200x Cost equation y= 1500x Revenue equation How many units must be manufactured and sold each day for the company to break even ?
mall plant manufactures riding lawn mowers. The plant has fixed costs (leases, insurance, and so on) of $24,000 per day and variable costs (labor, materials, and so on) of $1,200 per unit produced. The mowers are sold for $1,500 each. The cost and revenue equations are shown below where x is the total number of mowers produced and sold each day and the daily costs and revenue are in dollar y=24000 + 1200x Cost equation y= 1500x Revenue equation How many units must be manufactured and sold each day for the company to break even ?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQ
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A small plant manufactures riding lawn mowers. The plant has fixed costs (leases, insurance, and so on) of $24,000 per day and variable costs (labor, materials, and so on) of $1,200 per unit produced. The mowers are sold for $1,500 each. The cost and revenue equations are shown below where x is the total number of mowers produced and sold each day and the daily costs and revenue are in dollar
y=24000 + 1200x Cost equation
y= 1500x Revenue equation
How many units must be manufactured and sold each day for the company to break even ?
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