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Manav Manav
wrote...
Posts: 1
Rep: 0 0
5 days ago
A company that makes cell phones has the following cost structure. They have fixed costs of $145,000 per period and manufacturing costs of $15.16 per cell phone. Advertising is expected to be $25,000 per period and a special promotional contest will involve providing a free case for a cost of $5.30 per cell phone. Each cell phone sells for $49.95. What is the break-even point in the number of phones?

Select one:
a. 4886
b. 4240
c. 5765
d. 4917
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Anonymous
wrote...
5 days ago
Hi Manav

I have a similar question with the solution:

A company that makes cell phones has the following cost structure. They have fixed costs of $160 000 per period and manufacturing costs of $43.12 per cell phone. Advertising costs are expected to be $20 000 per period and a special promotion will involve providing a free case for a cost of $6.90 per cell phone. Each cell phone sells for $92.85. What is the break-even point in the number of phones?

Select one:

a. 1939

b. 3736

c. 4175

d. 467

e. 4203



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