A company reaches the break - even point when its total revenue equals its total cost. The company sells their product at $ 25 per unit. If their total cost is $ 3,000 plus a unit cost of $ 12 , does the company break - even when 200 units are sold?

Question

A company reaches the break - even point when its total revenue equals its total cost. The company sells their product at $ 25 per unit.  If their total cost is $ 3,000 plus a unit cost of $ 12 , does the company break - even when 200 units are sold?   
(a)   Yes (b)   No

bobpursley · Answer

revenue= 25*units cost=3000+12*units figure each when 200 is sold a better way is to solve for units at break even: 25u=3000+12u 13u=3000 u=231 is breakeven