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?

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?

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, ur answer is $20