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Calculate the number of bags of green fertilizer

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Reference no: EM131829618

Question - Donald Tweedt started a company to produce and distribute natural fertilizers. Donald's company sells two fertilizers that are wildly popular: green fertilizer and compost fertilizer.

Green fertilizer, the most popular among environmentally minded consumers, commands the highest price and sells for $16 per 30-pound bag. Green fertilizer also requires additional processing and includes environmentally friendly ingredients that increase its variable costs to $10 per bag. Compost fertilizer sells for $12 and has easily acquired ingredients that require no special processing. It has variable costs of $8 per bag. Tweedt's total fixed costs are $35,000. After some aggressive marketing efforts, Tweedt has been able to drive consumer demand to be equal for each fertilizer.

Required - Calculate the number of bags of green fertilizer that will be sold at break-even.

Reference no: EM131829618

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