Explore BrainMass
Share

Explore BrainMass

    Break Even Point - Revenue & Quantity

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A. A Pool Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. Mysti Farris, the production manager, is currently investigating the production of a standard house pool cue that should be very popular. Upon analyzing the costs, Mysti determines that the materials and labor cost for each cue is $25, and the fixed cost that must be covered is $2,400 per week. With a selling price of $40 each, how many pool cues must be sold to break even? What would the total revenue be at this break even point?

    b. Mysti Farris believes that there is a high probability that 120 pool cues can be sold if the selling rice is appropriately set. What selling price would case the break-even point to be 120?

    © BrainMass Inc. brainmass.com October 9, 2019, 9:00 pm ad1c9bdddf
    https://brainmass.com/statistics/probability/break-even-point-revenue-quantity-169423

    Solution Preview

    a. A Pool Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. Mysti Farris, the production manager, is currently investigating the production of a standard house pool cue that should be very popular. Upon analyzing the costs, Mysti determines ...

    $2.19