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. A company manufactures dog leashes that sell for $18.13, including shipping and handling.  The monthly fixed costs (advertising, rent, etc.) are $22,920 and the variable costs (materials, shipping, etc.) are $9.78 per leash.  How many leashes must be produced and sold each month for the company to break even?                        leashes.  Round to the nearest leash.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question

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.

A company manufactures dog leashes that sell for $18.13, including shipping and handling.  The monthly fixed costs (advertising, rent, etc.) are $22,920 and the variable costs (materials, shipping, etc.) are $9.78 per leash.  How many leashes must be produced and sold each month for the company to break even?

                       leashes.  Round to the nearest leash.

 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education