Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 4 weeks ago

Find the number of units a firm needs to sell to break-even using the information below.?

Fixed Cost=$500

Variable Cost= $ 2/unit

Price of product=$6

answer choices are

125 units

250 units

0 units

83.33 units

4 Answers

Relevance
  • 3 weeks ago
    Favorite Answer

    Break even units = Fixed costs / (Selling price – Variable cost)

    Break even units = 500 / (6 - 2) = 125 units

  • Don G
    Lv 7
    4 weeks ago

    Contribution Margin is $4 per unit, FC of 500 / 4 = 125 units to break-even.

  • Anonymous
    4 weeks ago

    i refuse to do your homework for you.

  • 4 weeks ago

    Let x be the number of units sold

    then

    revenue = 6x

    and costs = 500 + 2x

    break-even when costs = revenue

    so

    6x = 500 + 2x

    Solve for x

    4x = 500

    x = 125

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