Klaus Nicholas Plans to Sell Christmas Trees from a Vacant

question 58

Multiple Choice

Klaus Nicholas plans to sell Christmas trees from a vacant lot in downtown Springfield.The trees will cost him $1200 per 100 tress.They can only be purchased in lots of 100.It will cost Klaus $1,500 to rent the lot from November 1 through December 30.If Klaus sells the trees for $20 each,how many trees must he sell to break even? Assume that he purchases makes an initial,non-refundable purchase of 300 trees.

• A)$1,500/($20-$12)= 188 trees with a very small profit on the last tree.
• B)All 300 trees because he must purchase them in lots of 100.
• C)At least 255 trees because all costs are fixed once the trees are purchased.
• D)The Christmas tree project can never break even.

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