A manufacturer sells belts for $11 per unit. The fixed costs are $2000 per month, and the variable cost per unit is $7. The question asks how many belts must be sold to break even.

1. Problem Description

A manufacturer sells belts for $11 per unit. The fixed costs are$2000 per month, and the variable cost per unit is $

7. The question asks how many belts must be sold to break even.

2. Solution Steps

To break even, the total revenue must equal the total cost.

Let $q$ be the number of belts sold.

Total Revenue = (Price per unit) * (Number of units)

Total Revenue = $11q$

Total Cost = Fixed Costs + (Variable Cost per unit) * (Number of units)

Total Cost = $2000 + 7q$

To break even,

Total Revenue = Total Cost

$11q = 2000 + 7q$

$11q - 7q = 2000$

$4q = 2000$

$q = \frac{2000}{4}$

$q = 500$

3. Final Answer

The number of belts that must be sold to break even is

5

0

0. (D) q = 500