1. The owner of Old-Fashioned Berry Pies, S. Simon, is contemplating adding a new line of pies, which will require leasing new equipment for a monthly payment of $6,000. Variable costs would be $2 per pie, and pies would retail for $7 each. 
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3. a. How many pies must be sold in order to break even? 
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5. b. What would the profit (loss) be if 1,000 pies are made and sold in a month? 
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7. c. How many pies must be sold to realize a profit of $4,000? d. If 2,000 can be sold, and a profit target is $5,000, what price should be charged per pie?

Answer rating: 100% (QA)

a To break even total revenue must equal total costs Let x be the number of pies sold Total revenue ... View the full answer