Question
Can someone help me with this Math problem?
A Company plans to market a new model of house. Based on its
market studies, the company estimates that it can sell up to 3,500 units in 2019.
The selling price will be $2,000,000/unit. Variable costs are estimated to
be 40% of total revenue and fixed costs are estimated to be $16,000,000 for 2019.
Determine if the company can sell enough units to break even?
A Company plans to market a new model of house. Based on its
market studies, the company estimates that it can sell up to 3,500 units in 2019.
The selling price will be $2,000,000/unit. Variable costs are estimated to
be 40% of total revenue and fixed costs are estimated to be $16,000,000 for 2019.
Determine if the company can sell enough units to break even?
Answers
for break even ... u * (1 - .40) * 2000000 = (u * .40 * 2000000) + 16000000
u * .20 * 2000000 = 16000000
u * .20 * 2000000 = 16000000