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Break-even analysis is a method used to determine the sales volume required for a company to "break even," or experience neither a profit nor a loss on the sale of its product. The break- even point represents the number of units that must be made and sold for income from sales to equal the cost of producing the product. The break-even point can be calculated using the formula B = where F is the fixed costs, S is the selling price per unit, and V is the variable costs per unit. (a) Solve the formula B = S- for S. F+ BV S = B (b) Use your answer to part (a) to find the selling price per button pinhole video spycam required for a company to break even. The fixed costs are $17,000, the variable costs per spycam are $50, and the company plans to make and sell 200 spycams. 2$ (c) Use your answer to part (a) to find the selling price per spy camera video lighter required for a company to break even. The fixed costs are $36,000, the variable costs per lighter are $55, and the company plans to make and sell 900 lighters.

Break-even analysis is a method used to determine the sales volume required for a company to "break even," or experience neither a profit nor a loss on the sale of its product. The break- even point represents the number of units that must be made and sold for income from sales to equal the cost of producing the product. The break-even point can be calculated using the formula B = where F is the fixed costs, S is the selling price per unit, and V is the variable costs per unit. (a) Solve the formula B = S- for S. F+ BV S = B (b) Use your answer to part (a) to find the selling price per button pinhole video spycam required for a company to break even. The fixed costs are $17,000, the variable costs per spycam are $50, and the company plans to make and sell 200 spycams. 2$ (c) Use your answer to part (a) to find the selling price per spy camera video lighter required for a company to break even. The fixed costs are $36,000, the variable costs per lighter are $55, and the company plans to make and sell 900 lighters.

Advanced Engineering Mathematics
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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Break-even analysis is a method used to determine the sales volume required for a company to "break even," or experience neither a profit nor a loss on the sale of its product. The break- even point represents the number of units that must be made and sold for income from sales to equal the cost of producing the product. The break-even point can be calculated using the F formula B = where F is the fixed costs, S is the selling price per unit, and V is the variable costs per unit. S - V F (a) Solve the formula B = for S. S - V F + BV S = B (b) Use your answer to part (a) to find the selling price per button pinhole video spycam required for a company to break even. The fixed costs are $17,000, the variable costs per spycam are $50, and the company plans to make and sell 200 spycams. (c) Use your answer to part (a) to find the selling price per spy camera video lighter required for a company to break even. The fixed costs are $36,000, the variable costs per lighter are $55, and the company plans to make and sell 900 lighters. $
Transcribed Image Text:Break-even analysis is a method used to determine the sales volume required for a company to "break even," or experience neither a profit nor a loss on the sale of its product. The break- even point represents the number of units that must be made and sold for income from sales to equal the cost of producing the product. The break-even point can be calculated using the F formula B = where F is the fixed costs, S is the selling price per unit, and V is the variable costs per unit. S - V F (a) Solve the formula B = for S. S - V F + BV S = B (b) Use your answer to part (a) to find the selling price per button pinhole video spycam required for a company to break even. The fixed costs are $17,000, the variable costs per spycam are $50, and the company plans to make and sell 200 spycams. (c) Use your answer to part (a) to find the selling price per spy camera video lighter required for a company to break even. The fixed costs are $36,000, the variable costs per lighter are $55, and the company plans to make and sell 900 lighters. $
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