**Question**The manufacturer of widgets spends $5 to make each widget and sells them for $8. The manufacturer also has fixed costs each month of $1200.Find the number of widgets, $ x $, that the manufacturer needs to sell in order to break-even.Provide your answer below:$ x = $ [ ]**Explanation:**To find the break-even point, we need to determine when the total revenue equals total costs.1. **Cost per Widget:** $52. **Selling Price per Widget:** $83. **Fixed Monthly Costs:** $1200**Break-even Calculation:**Let $ x $ be the number of widgets sold.- **Total Cost:** $ 5x + 1200 $- **Total Revenue:** $ 8x $At break-even, Total Cost = Total Revenue:\[ 5x + 1200 = 8x \]Solve for $ x $:\[ 1200 = 8x - 5x \]\[ 1200 = 3x \]\[ x = \frac{1200}{3} \]\[ x = 400 \]Therefore, the manufacturer needs to sell 400 widgets to break-even.

Breakeven is where the total revenue is equal to the total cost.Total revenue is the product of…

Question The manufacturer of widgets spends $5 to make each widget and sells them for $8. The manufacturer also has fixed costs each month of $1200. Find the number of widgets, x, that the manufacturer needs to sell in order to break-even. Provide your answer below:

Question The manufacturer of widgets spends $5 to make each widget and sells them for $8. The manufacturer also has fixed costs each month of $1200. Find the number of widgets, x, that the manufacturer needs to sell in order to break-even. Provide your answer below:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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