SOLUTION: Can you please help me solve this problem: A manufacturer sells a product at $8 per unit, selling all that is produced. Fixed cost is $5000 and variable cost per unit is 22/9 dolla

Algebra ->  Test -> SOLUTION: Can you please help me solve this problem: A manufacturer sells a product at $8 per unit, selling all that is produced. Fixed cost is $5000 and variable cost per unit is 22/9 dolla      Log On


   

Question 99889: Can you please help me solve this problem: A manufacturer sells a product at $8 per unit, selling all that is produced. Fixed cost is $5000 and variable cost per unit is 22/9 dollars. Find the total output and revenue at the break-even point. Find the ouput required to obtain a profit of $10,000.
Thank you, I really appreicate your help
Answer by checkley71(8403) About Me  (Show Source):
You can put this solution on YOUR website!
8X=5000+22/9X
8X-22/9X=5000
(72X-22X)/9=5000
50X/9=5000 CROSS MULTIPLY:
50X=9*5000
50X=45000
X=45000/50
X=900 UNITS HAVE TO BE MADE & SOLD TO BREAK EVEN.
900*8=7200 IS THE TOTAL REVENUE FOR THE BREAK EVEN POINT.
TO MAKE A PROFIT OF $10,000:
50X=15000+22/9X
50X-22/9X=15000
50X/9=15000
50X=135000
X=135000/9
X=15000 UNITS HAVE TO BE MADE & SOLD FOR A PROFIT OF $10,000.