Pencils are sold in a local store for 65 cents each. The factory has $1500 in fixed costs plus 25 cents of additional expense for each pencil made. Assuming all pencils manufactured can be sold, find the break-even point. Break-even point:
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The fixed costs are $1500, and there is an additional expense of 25 cents for each pencil made. So the total cost per pencil is $1500 + $0.25 = $1500.25. Show more…
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