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Farris Billiard Supply sells all types of billiard equipment and is considering manufacturing their own brand of pool cues. Mysti Farris, the production manager, is currently investigating the production of a specialize pool cue that should be very popular. Upon analyzing the costs, Mysti determines that the materials and labor cost for each cue is $50 and the fixed cost that must be covered is $2400 per week.
a. With an expected selling price of $80 each, how many pool cues must be sold to breakeven?
b. What is the total revenue at that point?
c. What would the profit (or loss) be if they sold 100 per week?
d. What would the selling price have to be to make the BEP 60?
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