Find the number of units a firm needs to sell to break-even using the information below.?
Variable Cost= $ 2/unit
Price of product=$6
answer choices are
- olliverLv 610 months agoFavourite answer
Break even units = Fixed costs / (Selling price – Variable cost)
Break even units = 500 / (6 - 2) = 125 units
- Don GLv 710 months ago
Contribution Margin is $4 per unit, FC of 500 / 4 = 125 units to break-even.
- Anonymous10 months ago
i refuse to do your homework for you.
- L. E. GantLv 710 months ago
Let x be the number of units sold
revenue = 6x
and costs = 500 + 2x
break-even when costs = revenue
6x = 500 + 2x
Solve for x
4x = 500
x = 125