Compute the number

olmsc3h0 · #1 Jan 7, 2008, 10:10 PM

The company sells shovels for $27.75 each. The variable cost per shovel is $14.25. The company’s
monthly fixed costs are $2,538. Compute the number of shovels the company must sell
to break even.

oneguyinohio · Jan 7, 2008, 10:17 PM

If you're looking for homework answers, you should at least show the work you have attempted. Do you have any idea of how to begin the problem?

Hint.... Subtract the variable cost per shovel from the selling price. Then all you need to do is figure out how many shovels to sell in order to meet the fixed costs.

tlarocca · Jan 8, 2008, 05:44 AM

shovels.xls



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