A t-shirt manufacturer has fixed costs of 125000 dollars., Ask an Expert

Management Studies

Break Even Point - Fixed Cost divided by (Price - Variable Cost) or FC/(P-VC)

1. A T-Shirt Manufacturer has fixed costs of 125,000 dollars. She sells the T-Shirts for 10 bucks and has variable costs of 4 bucks per shirt. How many T-shirts does she need to sell to break even?

2. Roscoe drives a cab. He has fixed costs annual costs of 2300 dollars for insurance, taxes, and insurance. He charges people 50 cents a mile to drive them and estimates that for each mile driven the variable costs (gas, oil, etc) is 15.5 cents a mile. How many miles does Roscoe have to drive to break even?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9443917

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