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1-16 Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even? 1-17 Ray Bond, from Problem 1-16, is trying to find a new supplier that will reduce his variable cost of produc- tion to $15 per unit. If he was able to succeed in re- ducing this cost, what would the break-even point be?

1-16 Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even? 1-17 Ray Bond, from Problem 1-16, is trying to find a new supplier that will reduce his variable cost of produc- tion to $15 per unit. If he was able to succeed in re- ducing this cost, what would the break-even point be?

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4CQQ
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1-16 Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even? 1-17 Ray Bond, from Problem 1-16, is trying to find a new supplier that will reduce his variable cost of produc- tion to $15 per unit. If he was able to succeed in re- ducing this cost, what would the break-even point be?
Transcribed Image Text:1-16 Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even? 1-17 Ray Bond, from Problem 1-16, is trying to find a new supplier that will reduce his variable cost of produc- tion to $15 per unit. If he was able to succeed in re- ducing this cost, what would the break-even point be?
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