Break Even Problems Q1 (5 points) Stew's Plastics produces a variety of CD cases. The best-selling product is the CD-50.
Posted: Sat Feb 26, 2022 11:26 am
Break Even Problems Q1 (5 points) Stew's Plastics produces a variety of CD cases. The best-selling product is the CD-50. Several products are produced on the same manufacturing line, so there is a setup cost each time a changeover is made for a new product. The setup cost for the CD-50 is $3650. In addition, it costs $1.72 for each unit (CD Case) produced, and for each 100 CD Cases they have to put them in a box that costs $1.98. If there is less than 100 CD Cases, they will still need to put them in a box (in other words, if they had 102 CD Cases, they would do 2 boxes, one with 100 CD Cases and one with 2 CD Cases). What is the break-even point (in terms of number of CD cases rounded to the nearest integer) if they sell them for $6.85 each?