134k views
0 votes
The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $19 and has a variable cost of $11. There are $23,000 in fixed costs involved in the production process.

User Ggdx
by
7.2k points

1 Answer

4 votes

The correct question is:

The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $19 and has a variable cost of $11. There are $23,000 in fixed costs involved in the production process.

a. Compute the break-even point in units

Answer:

2,875

Step-by-step explanation:

Break-even point is the point where the cost of producing a good is equal to the gain from sale of the goods.

So sales price above the break-evem point will result in profit.

Using the formula

Break-even = Fixed cost/(Revenue from sale- Variable cost)

Break-even= 23,000/(19-11)

= 23,000/8

= 2,875 units

User Jpschroeder
by
7.3k points