Solve the Problem. -A Lumber Yard Has Fixed Costs of $4,726.80 Per Day

question 210

Multiple Choice

Solve the problem.
-A lumber yard has fixed costs of $4,726.80 per day and variable costs of $0.1 per board-foot produced. Lumber sells for $1.90 per board-foot. How many board-feet must be produced and sold daily to break even?

• A) 2,363 board-feet
• B) 47,268 board-feet
• C) 1,750 board-feet
• D) 2,626 board-feet

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Definitions:

Amortization Schedule

A table detailing each periodic payment on an amortizing loan, including the portion of the payment that goes toward principal and interest over the loan term.

Effective Rate

The actual interest rate on an investment or loan, taking into account the compounding of interest, as opposed to the nominal rate.

Monthly Rate

The interest rate or any other rate measured over the period of one month, often expressed as a percentage per month.

Principal

The person (client) for whom a service is performed. Amount that is borrowed using credit.