The cost of producing a computer diskette is as follows: Material cost is $7.00 each, labor cost is $2.00 each, and another expense is $1.50 each. If the fixed expenses are $69,000/month, how many diskettes must be produced each month for break even if each diskette is worth $250?
The cost of producing a computer diskette is as follows: Material cost is $7.00 each, labor cost is $2.00 each, and another expense is $1.50 each. If the fixed expenses are $69,000/month, how many diskettes must be produced each month for break even if each diskette is worth $250?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 8MC
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The cost of producing a computer diskette is as follows: Material cost is $7.00 each, labor cost is $2.00 each, and another expense is $1.50 each. If the fixed expenses are $69,000/month, how many diskettes must be produced each month for break even if each diskette is worth $250?
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