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