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

Asked 9/24/2009 6:13:35 PM

Updated 329 days ago|8/1/2023 12:33:10 AM

1 Answer/Comment

f
freestar.config.enabled_slots.push({ placementName: 'weegy_incontent_1', slotId: 'weegy_incontent_1' });

Expert answered|srwalker|Points 242|

Question

Asked 9/24/2009 6:13:35 PM

Updated 329 days ago|8/1/2023 12:33:10 AM

1 Answer/Comment

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.

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

This answer has been confirmed as correct and helpful.

39,249,018

questions answered

There are no comments.