SOLUTION: The MetroCity furniture company is planning to produce a new living room sofa. For the first year, the fixed costs for setting up production are $25,000. The variable costs for pro
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Question 1034074: The MetroCity furniture company is planning to produce a new living room sofa. For the first year, the fixed costs for setting up production are $25,000. The variable costs for producing each sofa are $800. The revenue for each sofa is $900. Find the numbers of sofas that sold at the break-even point
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
Cost:
25,000 fixed
800x variable, where x is the quantity
900 revenue
25,000+800x = 900x flip this around, it will look better
900x = 25,000+800x subtract 800 on both sides
100x = 25,000 divide both sides by 100
x = 250 is your number of sofas to break even
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