As a graphic artist,Nate has just finished producing a new calendar.Nathan's calendar cost him $1.00 for the shiny paper,$2.00 for the six color production,and $.25 for the plastic wire that holds it together at the top.The labor in developing the design was 4 hours of work @ $50/hour,and labor is being added to the rest of the fixed costs of $400.00.At a price of $12.00 per calendar,how many calendars will Nathan need to produce and sell in order to break even cover all his costs,but not make a profit)?
A)690 calendars
B)25 calendars
C)40 calendars
D)69 calendars

Question

Quizplus · Accepted Answer

To find the break-even point, calculate the total cost and divide by the price per calendar. Total cost = material costs ($1.00 + $2.00 + $0.25) + labor (4 hours * $50) + fixed costs ($400). Total cost = $3.25 + $200 + $400 = $603.25. Divide by the price per calendar ($12.00) to find the number of calendars needed: $603.25 / $12.00 ≈ 69 calendars.

As a Graphic Artist,Nate Has Just Finished Producing a New