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

whpalmer4 · Answer

Figure out how much it will cost to manufacture 25 clocks.  That's your break even point.  Divide that number by 25 to find the minimum price to charge per clock.

whpalmer4 · Answer

What's your answer?

anonymous · Answer

a?

whpalmer4 · Answer

Is that an answer, or a prayer? :-)

anonymous · Answer

lol my answer 20$?

whpalmer4 · Answer

Let's check it:

$20 per clock * 25 clocks = $500 received at our proposed minimum order/break-even price

cost to manufacture = $225 + $11/clock * 25 clocks = $225 + $11*25 = $225 + $275 
=$500

Okay, we break even with the minimum order of 25 clocks at $20 each.  A is correct.

anonymous · Answer

yay! thanks

whpalmer4 · Answer

You should be able to check your work in that fashion and know that your answer is correct, no need to ask someone else's opinion!