Question
Mutale Billiard Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. James, the production manager, is currently
Mutale Billiard Supply sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. James, the production manager, is currently investigating the production of a standard house pool cue that should be very popular. Upon analyzing the costs, James 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?
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