exter set up a computer repair business out of his home office. Based on the square footage of his office, he allocates a fixed cost of $400 per month in mortgage expenses. He also has a monthly internet bill of $45 and a monthly phone bill of $35. While repairs vary greatly, Dexter estimates an average of $19 in expenses per repair and charges a flat $49 fee per repair for his labor. 3a. How many computers does Dexter need to repair each month to break even? __________3b. What is Dexter’s profit / loss if he only repairs 8 computers in a month? __________3c. What fee would Dexter need to charge to break even at 8 repairs
exter set up a computer repair business out of his home office. Based on the square footage of his office, he allocates a fixed cost of $400 per month in mortgage expenses. He also has a monthly internet bill of $45 and a monthly phone bill of $35. While repairs vary greatly, Dexter estimates an average of $19 in expenses per repair and charges a flat $49 fee per repair for his labor. 3a. How many computers does Dexter need to repair each month to break even? __________3b. What is Dexter’s profit / loss if he only repairs 8 computers in a month? __________3c. What fee would Dexter need to charge to break even at 8 repairs
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Dexter set up a computer repair business out of his home office. Based on the square footage of his office,
he allocates a fixed cost of $400 per month in mortgage expenses. He also has a monthly internet bill of $45
and a monthly phone bill of $35. While repairs vary greatly, Dexter estimates an average of $19 in expenses
per repair and charges a flat $49 fee per repair for his labor.
3a. How many computers does Dexter need to repair each month to break even?
__________3b. What is Dexter’s
__________3c. What fee would Dexter need to charge to break even at 8 repairs?
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