Linear Equations And Inequalities Worksheet With Answers Page 23
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28Example: Break-Even Analysis
A recording company produces compact disk (CDs). One-time
fixed costs for a particular CD are $24,000; this includes costs
such as recording, album design, and promotion. Variable
costs amount to $6.20 per CD and include the manufacturing,
distribution, and royalty costs for each disk actually
manufactured and sold to a retailer. The CD is sold to retail
outlets at $8.70 each. How many CDs must be manufactured
and sold for the company to break even?
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