Personl stereo headsets can be manufactured from materials totaling \$13.39 per headset. Packaging and shipping to a distributer cost \$12.00 per 10 headsets. The distributor pays \$18.25 per headset plus a total of \$75 per shipping. If the manufacturer has fixed costs of \$2000, how many sets of 10 must the distrubitor order such tht the manufacturer breaks even?
Question
Updated 329 days ago|8/1/2023 12:33:10 AM
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User: Personl stereo headsets can be manufactured from materials totaling \$13.39 per headset. Packaging and shipping to a distributer cost \$12.00 per 10 headsets. The distributor pays \$18.25 per headset plus a total of \$75 per shipping. If the manufacturer has fixed costs of \$2000, how many sets of 10 must the distrubitor order such tht the manufacturer breaks even?

Weegy: 10

User: Personl stereo headsets can be manufactured from materials totaling \$13.39 per headset. Packaging and shipping to a distributer cost \$12.00 per 10 headsets. The distributor pays \$18.25 per headset plus a total of \$75 per shipping. If the manufacturer has fixed costs of \$2000, What is the equation to find out how many sets of ten the distributor order such that the manufacturer breaks even?

Question
Updated 329 days ago|8/1/2023 12:33:10 AM
Rating
3
To calculate the number of sets of 10 headsets the distributor must order for the manufacturer to break even, we need to set up an equation to find the break-even point.

Let's define x as the number of sets of 10 headsets ordered by the distributor.

Total cost for the manufacturer per set of 10 headsets:
Manufacturing cost per set + Packaging and shipping cost per set
= \$13.39 + (\$12.00 / 10) = \$13.39 + \$1.20 = \$14.59

Total revenue for the manufacturer per set of 10 headsets:
Selling price per set = \$18.25

Now, we can set up the break-even equation:

Total revenue = Total cost + Fixed costs
18.25x = 14.59x + 2000 + 75

Solving for x:

18.25x - 14.59x = 2075
3.66x = 2075
x = 2075 / 3.66
x 567.21

Since the distributor cannot order a fraction of a set, they need to order at least 568 sets of 10 headsets to reach the break-even point for the manufacturer.
Added 329 days ago|8/1/2023 12:33:10 AM

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