Solve the problem.
-A lumber yard has fixed costs of $4,726.80 per day and variable costs of $0.1 per board-foot produced. Lumber sells for $1.90 per board-foot. How many board-feet must be produced and sold daily to break even?
A) 2,363 board-feet
B) 47,268 board-feet
C) 1,750 board-feet
D) 2,626 board-feet

Question

Quizplus · Accepted Answer

To break even, the total cost (fixed costs + variable costs) must equal total revenue. Let $ x $ be the number of board-feet produced and sold. The break-even point occurs when $ 1.90x = 4,726.80 + 0.1x $. Solving for $ x $, we subtract $ 0.1x $ from both sides to get $ 1.80x = 4,726.80 $. Dividing both sides by 1.80 gives $ x = 2,626 $ board-feet.

Solve the Problem. -A Lumber Yard Has Fixed Costs of $4,726.80 Per Day