The Number of Pints of Fruit Sold at the Break-Even Point
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Matsunaga Farms produces strawberries and raspberries. Annual fixed costs are $15, 600. The cost driver for variable costs is 'pints of fruit produced'. The variable cost is $0.75 per pint of strawberries and $0.95 per pint of raspberries. Strawberries sell for $1.10 per pint, raspberries for $1.45 per pint. Two pints of strawberries are produced for every pint of raspberries
1. Computer the number of pints of strawberries and number of pints of raspberries produced and sold at break even point
2. Suppose only strawberries are produced and sold. Compute the break even point in pints.
3. Suppose only raspberries are produced and sold. Compute the break even point in pints.
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The solution determines the number of pints of strawberries and raspberries sold at the break-even point.
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Matsunaga Farms produces strawberries and raspberries. Annual fixed costs are $15, 600. The cost driver for variable costs is pints of fruit produced. The variable cost is $0.75 per pint of strawberries and $0.95 per pint of raspberries. Strawberries sell for $1.10 per pint, raspberries for $1.45 ...
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