My friend is having difficulty in a question. She showed me and I can't quite nut it out now I've gone curious and would like to no the answer and how you do it.
The Question is:
A manufacturer sells a particular prodcut for $40 per unit. The manufacturer's costs for prodcuing the units consist of a fixed $5000 plus a cost of $22 per unit. If the manufacturer produces and sells x units find
a) The value of the x for the manufacturer to at least 'break even'. (Aussume that x must take interger values)
At break even revenue=costs.
Originally Posted by atom360
hence for break even:
Now solve for x, if this is not an integer then you will need the next larger integer.