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Garden Duty produces shovels and rakes. Sales and costs for the most recent year are indicated below: Shovels Rakes Total Units 8,000 16,000 28,000 Sales
Garden Duty produces shovels and rakes. Sales and costs for the most recent year are indicated below:
The number of units and selling price per unit of both products appears to be stable for the foreseeable future. How much total revenue will Garden Duty have at break-even?
Shovels | Rakes | Total |
Units | 8,000 | 16,000 | 28,000 |
Sales revenue | $150,000 | $40,000 | $190,000 |
Variable costs | 98,000 | 18,000 | 116,000 |
Fixed costs | 28,000 | 12,000 | 40,000 |
Profit | $ 24,000 | $10,000 | $ 34,000 |
A. | $102,703 |
B. | $156,000 |
C. | $87,297 |
D. | $65,517 |
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