Ford Tops manufactures hats for baseball teams. Ford has fixed costs of $175,000 per quarter andsells each hat for $20. If the variable cost per hat is $10, how many hats must Ford sell each quarterto break even?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
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Ford Tops manufactures hats for baseball teams. Ford has fixed costs of $175,000 per quarter and
sells each hat for $20. If the variable cost per hat is $10, how many hats must Ford sell each quarter
to break even?

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