[reiddd]

the price of the supply of cardboard his increased due to a .15 fuel surcharge added to the cost. Carl has a fixed mostly cost of $257,000 and delivers 3.3 million package in the same time for a price of 3.24. The variable cost of the previous package was a $1.37

My question is just the math problem. I don't know how to start and end the math problem. Can you help with that part?

[ArcSine]

Happy to try and help, but first you'll need to clarify a few things:

• Are all the unit variables in your question expressed consistently in terms of the same variable? The "3.3 M package" is 3.3 million pounds? Square yards? Do the 0.15 surcharge, 3.24 price, and the 1.37 previous variable cost all refer to the same unit measure as the 3.3 million?
• I'm not sure exactly what "fixed mostly cost" refers to. Did the word 'mostly' just sneak in there accidentally, or do you mean that the costs are primarily fixed, but with some variable costs sprinkled in?
• Finally, what is the question, or the objective you're trying to answer?

Fill in those puzzle pieces, and we'll go from there.

[shorty1025]

Mostly should be monthly, 3.3 million packages, 15 fuel surcharge added to fixed cost,
We need to find the At what volume was the old break-even and what is the new break-even?
In order to make the same profit how many more packages needs to be produced?

[paraclete]

You are given components of the break even calulation, selling price, variable cost and fixed cost. You need only make the calculation.giving you the breakeven point. The surcharge is a variable cost not a fixed cost, so you have a another component of the breakeven calculation. You don't have sufficient information to separate the variable component of the $257,000 so regard it as fixed

The breakeven point is the fixed cost divided by the contribution margin or in other words

FC / (SP-VC)