Question

At a warehouse sale 100 customers are invited to choose one of 100 identical boxes. Five boxes contain $700 color television sets, 25 boxes contain $540 camcorders, and the remaining boxes contain $260 cameras. What is the minimum amount a customer would expect to pay to participate in the sale, i.e. what does the warehouse have to charge for each box just to break even?\

Answer 1

$352

Step-by-step explanation:

Given:

Total number of customers = 100

Number of color television box = 5

Cost of color television = $700

Number of camcorders box = 25

Cost of camcorders = $540

Number of cameras box = 100 - 5 - 25 = 70

Cost of cameras = $260

let the minimum amount paid by customer be 'x'

Now,

for break even point, the total cost = total revenue

or

Total cost of ( color tv box + camcorders + cameras ) = 100 × x

or

5 × $700 + 25 × $540 + 70 × $260 = 100x

or

$3500 + $13,500 + $18,200 = 100x

or

100x = $35,200

or

x = $352