Shredder Frets, a brand new manufacturer of guitars is looking at what price to charge for...

Transcribed Image Text:

Shredder Frets, a brand new manufacturer of guitars is looking at what price to charge for it's new burning finger tips line. They want to determine at which selling price they would break-even. They have a manufacturing capacity of 100 guitars. It will cost $500 for materials and labor to make each unit. The fixed costs are $15,000 annually. To break even, Shredder Frets would need to charge $ .00 for its guitar. Shredder Frets, a brand new manufacturer of guitars is looking at what price to charge for it's new burning finger tips line. They want to determine at which selling price they would break-even. They have a manufacturing capacity of 100 guitars. It will cost $500 for materials and labor to make each unit. The fixed costs are $15,000 annually. To break even, Shredder Frets would need to charge $ .00 for its guitar.

Answer rating: 100% (QA)

To determine the selling price at which Shredder Frets would break even we need ... View the full answer