Answer to Question #324298 in Economics for Bea

Question

Boya Ltd. produces e-readers to be used in primary schools. An e-reader is sold for R1 500 with a variable cost of R665 and a fixed cost of R960 000. How many e-readers must Boya Ltd. sell in order to break even? (Answer rounded up to the nearest unit).

Select one:

a.

443

b.

1 444

c.

640

d.

1 150

Answer 1

960000/(1500-665)=1149.7=1150

D.1150