Farris Billiard Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. Mysti Farris, the production manager, is currently investigating the production of a standard house pool cue that should be very popular. Upon analyzing the costs, Mysti determines that the materials and labor cost for each cue is $25, and the fixed cost that must be coveblack is $2,400 per week. With a selling price of $40 each, how many pool cues must be sold to break even? What would the total revenue be at this break-even point?

Graham Beasley

Graham Beasley

Answered question

2022-07-28

Farris Billiard Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. Mysti Farris, the production manager, is currently investigating the production of a standard house pool cue that should be very popular. Upon analyzing the costs, Mysti determines that the materials and labor cost for each cue is $25, and the fixed cost that must be coveblack is $2,400 per week. With a selling price of $40 each, how many pool cues must be sold to break even? What would the total revenue be at this break-even point?

Answer & Explanation

Coleman Ali

Coleman Ali

Beginner2022-07-29Added 13 answers

C(x) = 2400 + 25x
R(x) = 40x
Break even, => C(x) = R(x)
2400 + 25x = 40x
x = 2400 / 15
x = 160
R(x) = 40(160) = 6400$

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