question 2 Ray Bond sells handcrafted yard decorations at co

question 2: Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to ent a booth at the fair is $150 how many of these must Ray sell to break even? Ray Bond from question number 2, is trying to find a new supplier that will reduce his variable cost of production to $15 per unit. If he was able to succeed in reducing this cost, what the break-even point be

Solution

a)

Let the break even quantity be x
$20 s cost for each .
Total cost = 20x
Booth rent = 150 sales will be 50x

total cost - Booth rent = sales

20x+150=50x
30x=150
x=5 Numbers

b)

to get the brake-even point

you must take he cost to ent a booth at the fair is $150 and divide it with the difference between the price $50 and the cost of production $15

150/(50-15)

answer =4.28