Northwest Molded molds plastic handles which cost 030 per ha

Northwest Molded molds plastic handles which cost $0.30 per handle to mold. The fixed cost to run the molding machine is $2392 per week. If the company sells the handles for $2.30 each, how many handles must be molded and sold weekly to break even?

Solution

Let no. of hadles produced or sold be x in a week

So, Manufacturing cost , C(x) =0.30x+ 2392

Revenue R(x) = 2.30x

Breakeven : Manufacturing cost = Revenue

C(x) = R(x)

0.30x + 2392 = 2.30x

2.0x = 2392

x= 1196 plastic handles must be produced to have breakeven