SOLUTION: an electronics firm is planning to market a new graphing calculator. the fixed costs are $650,000 and the variable costs are $47 per calculator. the wholesale price of the calculat
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Question 1041175: an electronics firm is planning to market a new graphing calculator. the fixed costs are $650,000 and the variable costs are $47 per calculator. the wholesale price of the calculator will be $63. For the company to make a profit, it is clear that revenues must be greater that costs.
1. how many calculators must be sold for the company to make a profit?
2. how many calculator must be sold for the company to break even?
3. Discuss the relationship between the result in part 1 and 2.
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
Let = cost of making calculators
Let = revenue from sales of calculators
Let = profit from sales of calculators
--------------------------------------------
---------------------
(1)
To make a profit,
This means that to make a profit, at least 40626
calculators must be sold
-------------------------
(2)
If they break even
Sales of 40625 is the break even point
(3)
For (1)
For (2)
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