If your cost in manufacturing a shipment of clocks consists of a setup expense of $225 plus $11 per clock, and you want your break-even point for a particular shipment to be no greater than 25 clocks, then what is the minimum price that you can charge per clock? a. $20 c. $11 b. $500 d. $225

Question

If your cost in manufacturing a shipment of clocks consists of a setup expense of $225 plus  $11 per clock, and you want your break-even point for a particular shipment to be no greater than 25 clocks, then what is the minimum price that you can charge per clock? a. $20 c. $11 b. $500 d. $225

anonymous · Answer

You want to recoup the 225 setup cost over at most 25 clocks, so you have to add 225/25 = 9 to the cost per clock. 9 + 11 = 20
so answer is a. $ 20

anonymous · Answer

Thank you so much! god bless!

anonymous · Answer

God Bless you too & welcome :))