As a Graphic Artist, Nate Has Just Finished Producing a New

question 58

Multiple Choice

As a graphic artist, Nate has just finished producing a new calendar. His calendar cost him $1.00 for the shiny paper, $2.00 for the six color production, and $.25 for the plastic wire that holds it together at the top. The labor in developing the design was 4 hours of work at $50/hour, and labor is being added to the rest of the fixed costs of $400.00. At a price of $12.00 per calendar, how many calendars will Nate need to produce and sell in order to break even (cover all his costs, but not make a profit) ?

• A) 690 calendars
• B) 25 calendars
• C) 40 calendars
• D) 69 calendars

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Definitions:

Expected Expense

Expected expense is a forecasted cost anticipated to be incurred in the execution of a plan or operation.

Expected Revenue

The anticipated amount of money a business will receive from its operations, calculated by multiplying potential sales quantity by the selling price.

Expected Revenue

The anticipated income from the sale of goods or services, calculated by multiplying the expected sales volume by the unit price.

Standard Deviation

Standard deviation is a statistical measure that quantifies the variability or dispersion of a set of data points or distribution from its mean.