Scribd Logo
Upload

Welcome to Scribd!

  • SW 5 Problem No. 34

    Uploaded by

    Javadd Kilam
    1K views2 pages
    A steel drum manufacturer has a yearly fixed operating cost of $200,000. Each drum costs $160 to produce but sells for $200. To calculate the break-even sales volume, the model sets income equal to expenses and solves for x, the number of drums sold. The solution is that x must equal 5000 drums for income and expenses to break even, so the manufacturer's break-even sales volume is 5000 drums per year.

    Original Description:

    math

    Original Title

    sw 5 problem no. 34

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    A steel drum manufacturer has a yearly fixed operating cost of $200,000. Each drum costs $160 to produce but sells for $200. To calculate the break-even sales volume, the model sets income equal to expenses and solves for x, the number of drums sold. The solution is that x must equal 5000 drums for income and expenses to break even, so the manufacturer's break-even sales volume is 5000 drums per year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    1K views2 pages

    SW 5 Problem No. 34

    Uploaded by

    Javadd Kilam
    A steel drum manufacturer has a yearly fixed operating cost of $200,000. Each drum costs $160 to produce but sells for $200. To calculate the break-even sales volume, the model sets income equal to expenses and solves for x, the number of drums sold. The solution is that x must equal 5000 drums for income and expenses to break even, so the manufacturer's break-even sales volume is 5000 drums per year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Problem Number 34

    A steel drum manufacturer incurs a yearly fixed operating cost of $200,000. Each drum
    manufactured costs $160 to produce and sells for $200. What is the manufacture’s break-even sales
    volume in drums per year?

    A. 1000 B. 1250 C. 2500 D. 5000

    Given: fixed operating cost $200 000

    Manufactured costs $200


    price $200

    Required: manufacture’s break-even sales volume in drums per year


    Solution:

    Let x= number of units to be sold out per year


    Income = Expenses
    200x = 200,000 + 160x
    40x = 200,000

    X = 5000 units

    The answer is D.

    Problem Number 34

    A steel drum manufacturer incurs a yearly fixed operating cost of $200,000. Each drum
    manufactured costs $160 to produce and sells for $200. What is the manufacture’s break-even sales
    volume in drums per year?

    A. 1000 B. 1250 C. 2500 D. 5000

    Given: fixed operating cost $200 000

    Manufactured costs $200


    price $200
    Required: manufacture’s break-even sales volume in drums per year
    Solution:

    Let x= number of units to be sold out per year


    Income = Expenses
    200x = 200,000 + 160x
    40x = 200,000

    X = 5000 units

    The answer is D.

    Problem Number 34

    A steel drum manufacturer incurs a yearly fixed operating cost of $200,000. Each drum
    manufactured costs $160 to produce and sells for $200. What is the manufacture’s break-even sales
    volume in drums per year?

    A. 1000 B. 1250 C. 2500 D. 5000

    Given: fixed operating cost $200 000

    Manufactured costs $200


    price $200

    Required: manufacture’s break-even sales volume in drums per year


    Solution:

    Let x= number of units to be sold out per year


    Income = Expenses
    200x = 200,000 + 160x
    40x = 200,000

    X = 5000 units

    The answer is D.

    You might also like