Question

The manufacturer of banjos spends $250 to make each banjo and sells them for $400. The manufacturer also has fixed costs each month of $4500.

Answer 1

x=30

Explanation:

C(x)=R(x)

250x-4500=400x

150x=4500

x=x=30

If you are trying to find the number of banjox, x, that the manufacturer needs to sell in order to break-even

Answer 2

Explanation:

To Break-even, use the BE formula ;

Break-even; BE = Fixed costs/ (Selling price per unit - Variable cost per unit)

Fixed cost = 4,500

Selling price per unit = 400

Variable cost per unit = 250

BE = 4,500/(400-250)

BE = 4,500 / 150

Break - even = 30 units

Therefore, the manufacturer needs to sell 30 banjos to break-even.