A small automotive supply company manufactures fuel gauges for various types of cars. The company has fixed costs of $1,885,000 per year. The average cost of manufacturing a fuel gauge is $21.88. The average price the fuel gauge sells for is $48.20 The company manufactures its products 252 days per year. What is the minimum number of fuel guages per day that the company must produce in order to break even?
A small automotive supply company manufactures fuel gauges for various types of cars. The company has fixed costs of $1,885,000 per year. The average cost of manufacturing a fuel gauge is $21.88. The average price the fuel gauge sells for is $48.20 The company manufactures its products 252 days per year. What is the minimum number of fuel guages per day that the company must produce in order to break even?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 4.2IP
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