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    nassriano's Avatar
    nassriano Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Apr 21, 2013, 01:53 PM
    help me, I'm a first year student doing distance-learning. I need the method
    "FIRED-UP" produce specialist fireworks which they sell at R 300 per box. Their fixed costs are R 20 000 and the variable cost of a box of a fireworks is R 50. What is their break-even production level?
    teacherjenn4's Avatar
    teacherjenn4 Posts: 4,005, Reputation: 468
    Education Expert
    		  
    #2

    Apr 21, 2013, 02:14 PM
    We help with homework, but we won't do it for you. Post your attempt and then someone will come along to help you.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #3

    Apr 22, 2013, 07:23 AM
    Here is your formula:
    PX = VX + FC

    P = Unit Selling Price
    V = Unit Variable Price
    FC = Fixed Costs
    X = Sales in Units

    Just plug in your numbers and solve for X.
    nassriano's Avatar
    nassriano Posts: 2, Reputation: 1
    New Member
    		  
    #4

    Apr 22, 2013, 09:52 AM
    Thanks
    Pready !

    your formula, helped me.

    PX = VX + FC

    P = Unit Selling Price
    V = Unit Variable Price
    FC = Fixed Costs
    X = Sales in Units
    solution
    300x = 20000 + 50x
    300x - 50x = 20000
    250x = 20000(divide 250 both sides to get x)
    x = 80
    well done !
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