9
QuizMultiple Choice

Break-Even Analysis

Question 9 • FowU - Financial Math - B

Sodresh Sundials manufactures large stone sundials. It costs $14.22 to produce a sundial, which can then be sold for $36.75. The following table shows Sodresh Sundials’s non-production overhead costs and sundials sold over a period of one year.MonthOverhead ($)SoldJan.9,176290Feb.7,510329Mar.7,952309Apr.7,071288May8,942303Jun.9,249329Jul.7,813400Aug.6,821350Sep.9,382382Oct.8,117329Nov.9,018425Dec.6,503424In how many months did Sodresh Sundials either break even or turn a profit?

Answer
A
eleven
B
six
C
four
D
one

Explanation

Each sundial contributes $36.75 − $14.22 = $22.53 toward overhead and profit. Multiplying $22.53 by the number sold and subtracting each month’s overhead gives a nonnegative result in July, August, November, and December. That is four months, so the correct choice is four.

AI-written and checked against the verified answer.

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