A company produces graphing calculators for $22 and sells each one for $128. The fixed costs are $58,300

fixed-costs

#1

A company produces graphing calculators for $22 and sells each one for $128. The fixed costs are $58,300. Determine the number of calculators that must be produced and sold to break even.

The number of calculators that must be produced is:

Question 2 options:

Less than 500 calculators

Between 500 and 650 calculators

Between 650 and 800 calculators

Between 800 and 950 calculators

More than 950 calculators

Answer:

The formula for “breaking even” is when costs equal sales.
(Fixed costs) + (Cost to produce 1 unit)*x = (Sales from each unit)*x
58300+22x=128x is the formula for this problem.
Solving we get, 58300=106x, and then x=550.

Thus, the correct answer is 550, which is “between 500 and 650 calculators.”