The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000.He figures it will cost an additional $150 per cord to purchase and split wood with this machine,while he can sell each cord of split wood for $200. How many cords of wood would he have to split with this machine to break even?

Question

Quizplus · Accepted Answer

To break even, the owner needs to cover the $50,000 cost of the machine. The profit per cord is $200 (selling price) - $150 (cost) = $50. To find the break-even point: $50,000 / $50 = 1000 cords.

The Owner of Firewood to Go Is Considering Buying a Hydraulic