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

Business

Andreas Rios

6 August, 05:58

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

+4

Answers (1)

Know the Answer?

Tatum Andersen · 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