A company has been making wakeboards for many years. The monthly overhead is $21,800 and each wakeboard costs $573 in materials and labor to make. If these items are sold for $581
How many wakeboards must be sold to break even?
What is the profit in dollars if 116 wakeboards are made and sold?
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Answers & Comments
Profit on one wakeboard is only $8 (sell price minus cost per each). Dividing $21,800 by $8 is 2,725. So you would have to sell 2,725 of them per month just to break even on expenses.
Second part of question is simple. Since profit on one board is $8, just multiply that by 116 (answer is $928).
Really, this is 4th grade math -- most adults could do it in their head.
Doesn't sound like a very realistic enterprise.
if 116 are sold they;ll make 67,396
not sure on first half of the Q
lenanas