A small plant manufacturing riding mowers. The plant has fixed costs (leases, insurance, etc.) of $48,524 per day and variable costs (labor, materials, etc.) of $1,335 per mower produced. The mowers are sold for $2,083 each. The resulting cost and revenue equations are y= 48,524 + 1,335 ? Cost equation ?= 2,083 ? Revenue equation where ?x is the total number of mowers produced and sold each day. The daily costs and revenue are in dollars. How many mowers must be manufactured and sold each day for the company to break even?
A small plant manufacturing riding mowers. The plant has fixed costs (leases, insurance, etc.) of $48,524 per day and variable costs (labor, materials, etc.) of $1,335 per mower produced. The mowers are sold for $2,083 each. The resulting cost and revenue equations are y= 48,524 + 1,335 ? Cost equation ?= 2,083 ? Revenue equation where ?x is the total number of mowers produced and sold each day. The daily costs and revenue are in dollars. How many mowers must be manufactured and sold each day for the company to break even?
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Question
A small plant manufacturing riding mowers. The plant has fixed costs (leases, insurance, etc.) of $48,524 per day and variable costs (labor, materials, etc.) of $1,335 per mower produced. The mowers are sold for $2,083 each. The resulting cost and revenue equations are
y=
48,524
+
1,335
?
|
Cost equation |
?=
2,083
?
|
Revenue equation |
where
?x
is the total number of mowers produced and sold each day. The daily costs and revenue are in dollars.
How many mowers must be manufactured and sold each day for the company to break even?
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