I'm sorry I made a mistake. I meant breakeven at 100 television sets.
From your original post, 100 is correct.
No problem! If you want to calculate the breakeven point at 100 television sets, here's how you can do it:
1. Determine the fixed costs: Fixed costs are the expenses that do not change based on the number of units produced. In this case, you mentioned that your fixed costs are $5,000.
2. Calculate the contribution margin per unit: The contribution margin is the amount each unit contributes towards covering the fixed costs and generating a profit. In your original post, you mentioned that the selling price per unit is $1,000, and the variable costs per unit are $500. Therefore, the contribution margin per unit is $1,000 - $500 = $500.
3. Calculate the breakeven point: The breakeven point is the number of units you need to sell in order to cover all your costs and start making a profit. To calculate this, you can use the following formula:
Breakeven point (in units) = Fixed costs ÷ Contribution margin per unit
In this case, the breakeven point at 100 television sets would be:
Breakeven point = $5,000 ÷ $500 = 10 units
Therefore, you would need to sell a minimum of 10 television sets in order to cover your costs and reach the breakeven point.
I hope this clarifies the calculation for you! Let me know if you have any further questions.