Marcy's company produces grandfather clocks. Each clock costs them $164 to make, and they can sell a clock for $625.

If their annual overhead costs, not counting the cost to produce the clocks, comes to $96,000, how many clocks must Marcy's company sell each year to break even? Round to the nearest whole clock.

a. 122 b. 154 c. 208 d. 293

Question

Darrell

Business

14 October, 23:28

Marcy's company produces grandfather clocks. Each clock costs them $164 to make, and they can sell a clock for $625.

If their annual overhead costs, not counting the cost to produce the clocks, comes to $96,000, how many clocks must Marcy's company sell each year to break even? Round to the nearest whole clock.

a. 122 b. 154 c. 208 d. 293

+3

Answers (1)

Know the Answer?

Clare King · Answer 1

option (c) 208

Explanation:

Data provided in the question:

Cost of making clock = $164 each

Selling cost of each clock = $625

Annual overhead cost = $96,000

Now,

Let the break-even clocks be 'x'

at break-even

Total revenue = Total cost

thus,

$625x = $164x + $96,000

or

$461x = $96,000

or

x = 208.24 ≈ 208

Hence,

the answer is option (c) 208