SOLUTION: Assume the following facts for your company: Average shirt sales price 67 dollars, wholesale price per shirt 30 dollars and fixed costs are 100,000 dollars. If your wholesale shir
Algebra.Com
Question 161310: Assume the following facts for your company: Average shirt sales price 67 dollars, wholesale price per shirt 30 dollars and fixed costs are 100,000 dollars. If your wholesale shirt supplier raised the wholesale price 10 percent and the fixed costs remain unchanged at 100,000 dollars what would be your breakeven point.
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
Assume the following facts for your company: Average shirt sales price 67 dollars, wholesale price per shirt 30 dollars and fixed costs are 100,000 dollars. If your wholesale shirt supplier raised the wholesale price 10 percent and the fixed costs remain unchanged at 100,000 dollars what would be your break-even point.
:
An increase of 10% means wholesale shirts cost $33 instead of 30
:
Let x = no. of shirt that need to be sold to break even
:
Revenue = cost
67x = 33x + 100000
67x - 33x = 100000
34x = 100000
x =
x = 2941.176 ~ 2,942 shirts sold to break even
;
:
Check solution
67(2942) = 33(2942) + 10000
197,114 ~ 97,086 + 100000 (we rounded up the no. of shirts)
RELATED QUESTIONS
Nielsen’s fine clothing store spends 30 percent of its $380,000 wholesale clothing... (answered by schrammbledeggs)
If you buy a shirt for 225 dollars, the discount was 25%. What is original price of... (answered by josmiceli)
Ken buys a shirt on a 30% sale from its original price of 10 dollars. He then resells it... (answered by nyc_function)
how do I work this problem?
Ronald wants to buy a shirt that is on sale for 15% off... (answered by Earlsdon)
company 1 one size fits all charges 4.00 dollars per shirt
company 2 you draw it we... (answered by drk)
Suppose you pay $16 for a shirt that has been discounted 30%. Find the original price of... (answered by ewatrrr)
A shirt is on sale for 40% off. The sale price is $12. What was the original price? What... (answered by josmiceli,rfer)
Chang paid $8.19, including a 5% sales tax, for a shirt. If the shirt was on sale with a... (answered by josmiceli)
Your friend's weekly revenue R (in dollars) from her tie-dye T-shirt business can be... (answered by stanbon)