You are considering opening a copy service in the student union. You estimate your fixed cost a $21,000 and the variable cost of each copy sold at $0.02. You expect the selling price to average $0.08. a) Based on the given information, the break-even point in dollars = $______ (round your response to the nearest whole number)

You are considering opening a copy service in the student union. You estimate your fixed cost a $21,000 and the variable cost of each copy sold at $0.02. You expect the selling price to average $0.08. a) Based on the given information, the break-even point in dollars = $______ (round your response to the nearest whole number)

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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As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance) $6000 Variable cost per occupied room per night $ 20 Revenue per occupied room per night $ 75 A. Write the expression for total cost per month. Assume 30 days per month. B. Write the expression for total revenue per month. C. How many rooms do they need to sell per night in order to break even?