Break-Even Analysis Answers

The following graph represents the cost and revenue functions for custom-made computers. How many computers have been sold at the break-even point?

June has decided to take up quilting. She bought a sewing machine for $135. It costs her $11.75 in raw materials to make a quilt, and she can sell a quilt for $28.50. Which of the following graphs best illustrates June’s situation? I. II. III. IV.

A chicken farmer can produce one crate of eggs at a cost of $9.86, and can sell that crate for $34.24. If the farmer has a starting overhead cost of $7,312, not including production costs, how many crates must be sold in order to realize a profit of $11,300, to the nearest crate?

Bloro Appliances is pushing a new model of dishwasher. It costs Bloro $71.22 to put each dishwasher on the sales floor, but they can sell the dishwashers for $285.50 apiece. Bloro has three primary salespeople, each of whom earns a different commission per dishwasher sold. Their sales data for the past six months is shown below.SalespersonSoldCommission/SaleRick114$47.50Carl176$62.75Lee96$51.35In order to stock the dishwashers, Bloro Appliances had to sign a contract which included costs of $15,975. How much profit did Bloro Appliances gain from sales of these dishwashers over the past six months?

Khybar Inc. manufactures dental x-ray machines. The company can sell an x-ray machine which cost $508.17 to produce for $1,295.75. Each of the company’s two salespeople earns a different commission per sale, as shown in the table below.SalespersonCommission/SaleGreg$243.15Colleen$288.75Last year, Greg sold 11 fewer x-ray machines than Colleen did. Khybar Inc.’s total expenses last year, not counting production costs or commissions, came to $79,558.59. If Khybar Inc. broke even, how many x-ray machines were sold last year in total?

Arderi Air Conditioning sells one primary model of air conditioner. Each unit of this model costs them $61.25 to produce, but it sells for $142.50 apiece. Arderi Air Conditioning employs three salespeople, each of whom earns a different commission per unit sold, as shown on the following table. Salesperson Commission/Sale Mary $36.25 Jay $28.50 Abby $25.75 Last month, Arderi Air Conditioning had a total fixed overhead cost of $7,622.25. It is known that one salesperson sold 51 units, one salesperson sold 43 units, and one salesperson sold 54 units. Which arrangement of sales would cause Arderi Air Conditioning to break even?