Question 875325: 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 than costs.
(A) How many calculators must be sold for the company to make a
profit?
(B) How many calculators must be sold for the company to break
even?
(C) Discuss the relationship between the results in parts A and B.
Answer by mananth(16946)   (Show Source):
You can put this solution on YOUR website! let x represent the number of calculators
fixed costs = 650,000
variable cost = 47 each
C= 650,000+47x
Sales = 63x
To make a profit
sales > costs
63x>650,000+47x
63x-47x>650,000
16x>650,000
/16
x>650000/16
it has to sell more than 40625 to make a profit.
For break even
sales = cost
it will break even at 40625 calculators
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