Purchase Solution

# Breakeven units

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Problem 2: Break Evan analysis
The Aloha Christmas tree company buys fresh christmas trees from the Northwest
United States at the start of the Christmas season for \$25 a piece and sells them
in Honolulu for \$65 a piece. He rents three refrigerated containers from Matson
Navigation Company to transport the trees from Seatle to Honolulu for \$1000 a container

TC = 3000 + 25Q Brk.Even: solve for Q where TR = TC
TR = 65Q \$5000 Profit Solve for Q: TR - TC = 5000

Questions
1. Write the total revenue and total cost function and find the number of Christmas
trees
2. From the above, find the number of trees that must be sold to achieve break even
in the operation.
3. If the proprietor wants to achieve a profit of \$5000, how many trees must he sell.

##### Solution Summary

The solution explains how to calculate the breakeven units and the units needed for desired profit.

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Problem 2: Break Evan analysis
The Aloha Christmas tree company buys fresh Christmas trees from the Northwest
United States at the start of the Christmas season for \$25 a piece and sells them
in Honolulu for \$65 a piece. He rents three refrigerated containers from Matson
Navigation Company to transport the trees from Seattle to Honolulu for \$1000 a container

TC = 3000 + 25Q Brk.Even: solve for Q where TR = TC
TR = 65Q \$5000 Profit Solve for Q: TR - ...

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