SOLUTION: Whackedmhard sports is planning to introduce a new line of tennis rackets . The fixed costs for the new line are $25,000and the variable cost of producing each racket is $60 . If t

Question 988091: Whackedmhard sports is planning to introduce a new line of tennis rackets . The fixed costs for the new line are $25,000and the variable cost of producing each racket is $60 . If the racket sells for $80 , find the number of rackets that must be sold in order to break even .
Found 2 solutions by Boreal, solver91311:
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
Cost equation: c=25,000+60x
Revenue equation: r=80x
Set them equal to breakeven.
80x=25000+60x
20x=25000
x=1250.
The cost will be 25,000 to 75,000=$100,000
The revenue will be 1250*80=$100,000

Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!

In order to break even, you have to get rid of the $25,000 fixed costs. Every unit you sell takes a $20 bite out of the $25,000. How many $20 bites do you have to take in order to consume the entire amount?

John

My calculator said it, I believe it, that settles it

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