Jack Spratt Makes Candlesticks

question 48

Short Answer

Jack Spratt makes candlesticks.His fixed cost is $5,000, variable cost is $3.50, and selling price, $8.50.To what value must he reduce his variable cost if he wants a break-even point of 900 units?

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Definitions:

Weber's Fraction

is a concept in psychophysics that represents the smallest change in a stimulus that can be detected, reflecting the proportional relationship rather than the absolute difference.

Vision

The faculty or state of being able to see with the eyes, involving the perception of environment and movement.

Hearing

The physiological process of perceiving sound by detecting vibrations through an organ such as the ear.

Weber's Law

Weber's Law is a principle in psychology that states the smallest change in a stimulus that can be detected is a constant proportion of the stimulus level.