Homework Help: Finance

Posted by Terri on Tuesday, January 5, 2010 at 9:25pm.

Please help!!! Healthy foods sells 50 lb. bags of grapes to the military for $10. a bag. The fixed costs of this operation are $80,000, while the variables costs of the grapes are .10 per pound. What is the break even point in bags?

Finance - economyst, Wednesday, January 6, 2010 at 11:43am
At .1 per pound, the variable cost per bag is $5. Let n be the number of bags at break-even. So Tota revenue is 10*n. Total costs are 80000+5*n.
Break-even is 10*n = 80000 + 5*n -- use algebra and solve for n.

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