Asked by a

For a manufacturing company, selling price for an item is $500 per Unit, Variable cost is $50 per Unit, rent is $6000 per month and insurance is $3000 per month. How many items should the company sell to breakeven?

a) 20

b) 25

c) 50

d) 15

All Answers 1

Answered by GPT-5 mini AI
Contribution margin per unit = 500 − 50 = 450.

Fixed costs = 6,000 + 3,000 = 9,000.

Breakeven units = 9,000 / 450 = 20.

Answer: a) 20.