A company manufactures dog leashes that sell for $17.64, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $24,020 and the variable costs (materials, shipping, etc.) are $8.61 per leash. How many leashes must be produced and sold each month for the company to break even? leashes. Round to the nearest leash.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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A company manufactures dog leashes that sell for $17.64, including shipping
and handling. The monthly fixed costs (advertising, rent, etc.) are $24,020 and
the variable costs (materials, shipping, etc.) are $8.61 per leash. How many
leashes must be produced and sold each month for the company to break even?
leashes. Round to the nearest leash.
Transcribed Image Text:A company manufactures dog leashes that sell for $17.64, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $24,020 and the variable costs (materials, shipping, etc.) are $8.61 per leash. How many leashes must be produced and sold each month for the company to break even? leashes. Round to the nearest leash.
Break-Even Analysis
Any manufacturing company has costs which include fixed costs such as plant
overhead, product design, setup, and promotion; and variable costs that depend
on the number of items produced. The revenue is the amount of money
received from the sale of its product. The company breaks even if the revenue
is equal to the cost.
Transcribed Image Text:Break-Even Analysis Any manufacturing company has costs which include fixed costs such as plant overhead, product design, setup, and promotion; and variable costs that depend on the number of items produced. The revenue is the amount of money received from the sale of its product. The company breaks even if the revenue is equal to the cost.
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