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Forever quilting is a company that designs and distributes quilting kits. the kits are priced at $120 each. (there is no quantity discount. the costs of the materials that go into each kit are $45. it costs $5 in labor to assemble a kit. the company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in quilting magazines, and $3,500 for the monthly salary of its owner. forever quilting's marginal revenue is:

Respuesta :

120-45-5. = $70 profit for each quilt

Monthly total expenses are $5,200

5200/ 70=74.28
So you need to sell at least 75 quilts to break even
abbusaicharan02

You need to sell at least 75 quilts to break even

120-45-5. = $70 profit for each quilt

Monthly total expenses are $5,200

5200/ 70=74.28.

What is the Marginal Income Formula?

To calculate marginal income, the company divides the change in total income by the change in total production. Marginal revenue is the retail price of one additional item sold. The marginal revenue formula is: Marginal revenue = change in sales/change in quantity.

Marginal Revenue (MR) is an increase in revenue resulting from the sale of additional production units. Marginal revenue can remain constant over a particular production level, but according to the law of diminishing returns, it eventually slows down as the level of production increases.

Learn more about marginal revenue here: https://brainly.com/question/13444663

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