SOLUTION: A small plant manufactures riding lawn mowers. The plant has fixed costs(leases, insurances, and so on. 39,000 per day variable costs of $1,200 per unit produced. The mowers are so

Question 1181757: A small plant manufactures riding lawn mowers. The plant has fixed costs(leases, insurances, and so on. 39,000 per day variable costs of $1,200 per unit produced. The mowers are sold for 1,500 each. The cost and revenue equations are shown below.

y=39,000+1,200x Cost equation
y=1,500x Revenue Equation
How many units must be manufactured and sold each day for the company to break even?
Answer by ikleyn(52786) (Show Source): You can put this solution on YOUR website!
.


The break event is when  Total Cost = Revenue,  or


    39000 + 1200x = 1500x.


It gives


    x =  =  =  = 130 mowers.


ANSWER.  Break event is  130 mowers.

Solved, answered and explained.

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