document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1021614>Question 1021614</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help solve this question (detailed workings very much appreciated!) Thank you.\r<BR>\n" );
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document.write( "BigGear motor company sells its scooters at $500 per unit. The company’s manufacturing cost for one scooter is $20. The fixed cost per month for the company is $19,200.\r<BR>\n" );
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document.write( "1) Give two examples of fixed costs<BR>\n" );
document.write( "2) Define the break even level<BR>\n" );
document.write( "3) Find the break even quantity <BR>\n" );
document.write( "4) The owner of the company wants to make a profit of at least $20,000 in the month of June. How many scooters must the company sell to achieve this target? </SPAN>\n" );
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document.write( "BigGear motor company sells its scooters at $500 per unit. The company’s manufacturing cost for one scooter is $20. The fixed cost per month for the company is $19,200. <BR>\n" );
document.write( "1) Give two examples of fixed costs:: 19,200 per month ; $20 per scooter<BR>\n" );
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document.write( "2) Define the break even level:: When Revenue (500x) = Cost(19200+20x)<BR>\n" );
document.write( "Solve: 500x = 19200 + 20x<BR>\n" );
document.write( "480x = 19200<BR>\n" );
document.write( "x = 40 (when they make and sell 40 scooters in a month)<BR>\n" );
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document.write( "3) Find the break even quantity:: (when they make and sell 40 scooters in a month)<BR>\n" );
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document.write( "4) The owner of the company wants to make a profit of at least $20,000 in the month of June. How many scooters must the company sell to achieve this target?<BR>\n" );
document.write( "Revenue - Cost = 20,000<BR>\n" );
document.write( "500x - (19200+20x) = 20000<BR>\n" );
document.write( "480x = 39200<BR>\n" );
document.write( "x = 82 scooters sold (when rounded up)<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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