Answer:
$20 per clock
Step-by-step explanation:
A shipment has:
Fixed Cost = 225 (one time)
Variable Cost = 11 per clock
If there are x clocks in a shipment, total cost would be:
Total Cost = Fixed + Variable
Total Cost = 225 + 11x
If there are 25 clocks in a shipment (x = 25), the total cost would be:
Total Cost = 225 + 11(25) = $500
To break even, you must raise $500 from the 25 clocks, so how much would you need to charge??
500/25 = $20 per clock
