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Break-Even Analysis The cost of producing x cartons of CDs

Chapter , Problem 54A

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QUESTION:

Problem 54A

Break-Even Analysis The cost of producing x cartons of CDs is C(x) dollars, where C(x) = 200x+ 1000. The CDs sell for $400 per carton.

a. Find the break-even quantity.

b. What revenue will the company receive if it sells just that number of cartons?

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QUESTION:

Problem 54A

Break-Even Analysis The cost of producing x cartons of CDs is C(x) dollars, where C(x) = 200x+ 1000. The CDs sell for $400 per carton.

a. Find the break-even quantity.

b. What revenue will the company receive if it sells just that number of cartons?

ANSWER:

SOLUTION:
Step 1 of 3:

In this question, The cost of producing x cartons of CDs is . The CDs sell for per carton. (a) Find the break-even quantity (b) Find the revenue be at that point.

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