Solve the problem.
-A lumber yard has fixed costs of $1384.90 per day and variable costs of $0.56 per board-foot produced. Lumber sells for $1.66 per board-foot. How many board-feet must be produced and sold daily to break even?
A) 623 board-feet
B) 2473 board-feet
C) 1259 board-feet
D) 839 board-feet

Question

Quizplus · Accepted Answer

To break even, total costs must equal total revenue. The fixed cost is $1384.90, and the variable cost per board-foot is $0.56. The selling price per board-foot is $1.66. The break-even point is calculated as: $1384.90 / ($1.66 - $0.56) = 1259 board-feet.

Solve the Problem. -A Lumber Yard Has Fixed Costs of $1384.90 Per Day