SOLUTION: Please help me with this question. Charlie’s Premium Chocolate Company is a manufacturer of premium quality chocolate bars. The company has fixed costs of $500,000 per month. It s

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Question 1124287: Please help me with this question. Charlie’s Premium Chocolate Company is a manufacturer of premium quality chocolate bars. The company has fixed costs of $500,000 per month. It sells chocolate bars and other chocolate products for an average price of $3.00. The average variable costs of producing these products is $1.40. How many chocolate products does the company need to sell in a month to exactly break-even?

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


This is only solvable with the given information if you assume that the number of products manufactured exactly equals the number sold. Based on that assumption, the cost function for products manufactured is:



And the revenue function for products sold is:



In order to break even, revenue must equal cost. Set the revenue function equal to the cost function and solve for


John

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