Question

It says its not 3.4 but im sure its correct help me please

Problem 2-10 (algorithmic) Question Help A mail carrier at the U.S. Postal Service works on Sunday delivering high-priority letters and packages. She can deliver 15 items per hour. The fixed hourly costs (vehicle depreciation, insurance, etc.) equal $44 and the hourly variable costs (time and a half wages, etc.) total $0.50 per item delivered. How much must the U.S. Postal Service charge for each item delivered in order to break even on Sunday deliveries? The U.S. Postal Service must charge $ 3.4 for each item delivered in order to break even on Sunday deliveries. (Round to the nearest cent.)

Answer 1

Q> From given information in question, Fixud Cost $44 * * Variable Cost per item 070 $0.50 Total Items delieueredes 15 Sales per item (&) 15 At break even point; Profit So, Total Sale= Fixed Cost & Total Variable Cost s X 15 =44+ 15X0.5 O

15 s = =44+ 7.5 15s = 51.5 s=151.5 15 1 = 3.433 Hence, U.s Portal service must charge & $ 3.483 ) OR $ 3-4 for each item.

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