Question

Complete the information. Use numerals instead of words. If necessary, use / for the fraction bar. A company manufactures replacement parts for construction cranes. The fixed manufacturing cost is $2,400, and the variable cost per part is $5.50. Each part is sold at $8.50. The minimum number of parts the company must sell to break even is _____.

Answer 1

It's actually 800!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Answer 2

Let the parts sold be x
The money earned is $8.80 per part
The money invested is $5.50 per part + manufacturing cost of $2,400
These have to be equal to break even.
8.80x = 5.50x + 2400
3.30x = 2400
x = 727.27
The company must sell 728 parts to break event because 0.27 parts cannot be sold.