Asked by John
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
(a) Yes (b) No
Answers
Answered by
bobpursley
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
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
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