Break even point-revenue-quantity

Reference no: EM13102782

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?

Reference no: EM13102782

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