Solve the problem.
-A lumber yard has fixed costs of $ 7240.90 a day and variable costs of $ 1.00 per board-foot produced. The company gets $ 2.90 per board-foot sold. How many board-feet must be produced daily to breakeven (zero profit)?
A)7240 board-feet
B) 1856 board-feet
C) 2540 board-feet
D)3811 board-feet

Question

Solve the problem.
-A lumber yard has fixed costs of $ 7240.90 a day and variable costs of $ 1.00 per board-foot produced. The company gets $ 2.90 per board-foot sold. How many board-feet must be produced daily to breakeven (zero profit)?
A)7240 board-feet 
B) 1856 board-feet
C) 2540 board-feet
D)3811 board-feet

Quizplus · Accepted Answer

To break even, total costs must equal total revenue. Fixed costs are $7240.90, and variable costs are $1.00 per board-foot. Revenue is $2.90 per board-foot. Set up the equation: $7240.90 + $1.00x = $2.90x. Solving for x gives x = 3811 board-feet.

Solve the Problem. -A Lumber Yard Has Fixed Costs of $ 7240.90 a