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Question 993305: An executive invested a total of $105,000 to start a recording company to produce reissues of classic jazz. Each release will be a boxed set of CD's that will retail for $45 per set.
If each set can be produced for $28.20, how many sets must be sold for the executive to break even?
How many sets must be sold for the executive to make a profit?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! An executive invested a total of $105,000 to start a recording company to produce reissues of classic jazz.
Each release will be a boxed set of CD's that will retail for $45 per set.
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If each set can be produced for $28.20, how many sets must be sold for the executive to break even?
Cost Eq:: C(x) = 105000+28.20x
Revenue Eq:: R(x) = 45x
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Break Even occurs when C(x)=R(x)
105000+28.20x = 45x
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16.80x = 105000
x = 6250 (# of items sold to break even)
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How many sets must be sold for the executive to make a profit?
Ans: x >= 6251
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Cheers,
Stan H.
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