A small plant manufactures riding lawn mowers. The plant has fixed costs (leases

Question

A small plant manufactures riding lawn mowers. The plant has fixed costs (leases, insurance, and so on) of $40,000 per day and variable costs (labor, materials, and so on) of $1,300 per unit produced. The mowers are sold for $1,700 each. The cost and revenue equations are shown below where x is the total number of mowers produced and sold each day, and the daily costs and revenue are in dollars. Complete parts (A) and 40,000+1,300x y 1,700x Cost equation Revenue equation (A) How many units must be manufactured and sold each day for the company to break even? L riding lawn mowers

Explanation / Answer

for break even cost and revenue must be equal

y=40,000+1,300x

revenue equation=1700x

40,000+1300x=1700x

40,000=400x

x=100

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