Company C manufactures electric motors. The variable costs are $5,000 per month, the average selling price of the motor is $800 per motor. Fixed costs of the company amount to $80,000 per month, which includes all taxes. Determine the number of motors that must be produced per month to breakeven.
Company C manufactures electric motors. The variable costs are $5,000 per month, the average selling price of the motor is $800 per motor. Fixed costs of the company amount to $80,000 per month, which includes all taxes. Determine the number of motors that must be produced per month to breakeven.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 8MC
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Company C manufactures electric motors. The variable costs are $5,000 per month, the average selling price of the motor is $800 per motor. Fixed costs of the company amount to $80,000 per month, which includes all taxes. Determine the number of motors that must be produced per month to breakeven.
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