Question
Farris Billiard supply sells all type of Billiard equipment and is considering manufacturing its own brand of pool cues. Mysti Farris, the production manager, is
Farris Billiard supply sells all type of Billiard equipment and is considering manufacturing its 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 $2400 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?
Suppose Mysti farris is considering raising the selling price of each cue to $50 instead of $40. If this is done while the costs remain the same, what would the new break-even point be? what would the total revenue be at this break-even point?
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