Solve the problem.If your cost in manufacturing a shipment of clocks consists of a setup expense of $225 plus $11 per clock, and you want your break-even point for a particular shipment to be no greater than 25 clocks, then what is the minimum price that you can charge per clock?

At a price of p dollars per clock, revenue from q clocks is pq, while cost is 225 + 11q. Break-even occurs when these are equal, so the break-even quantity is 225/(p − 11). To make it no greater than 25, the price must satisfy p − 11 ≥ 225/25 = 9, so the minimum price is $20 per clock, choice A.

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