Question: PLEASE SHOW WORK. Thank you so much for your help! Here is question number 7 for reference: 17. Andy Mendoza in Problem 7 is concerned
PLEASE SHOW WORK. Thank you so much for your help!
17. Andy Mendoza in Problem 7 is concerned that the demand for his dolls will not exceed the break- even point. He believes he can reduce his initial investment by purchasing used sewing machines and fewer machines. This will reduce his initial investment from $25,000 to $17,000. However, it will also require his employees to work more slowly and perform more operations by hand, thus increasing variable cost from $10 to $14 per doll. Will these changes reduce his break-even point? 7. Andy Mendoza makes handcrafted dolls, which he sells at craft fairs. He is considering mass- producing the dolls to sell in stores. He estimates that the initial investment for plant and equip- ment will be $25,000, whereas labor, material, packaging, and shipping will be about $10 per doll. If the dolls are sold for $30 each, what sales volume is necessary for Andy to break even? 7) initial investment= # 25,000 dolls sold for= $30 each other charges = 10 30x = 25,000 + 10x 30x-10x = 25,000 20x = 25,000 20x 26x X= 12 SO

Here is question number 7 for reference:


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