Posted by Jean on .
The fixed cost for a firm drop by 25%. Prior to this breakthrough fixed cost were $100,000 and unit contribution maegin was and remains at 5.00. The new amount of break-even units will be: Thank You Very Much! ps: I got two answer
Some information appears to be missing here. As I read your question, the original cost function was C=100,000 + 5.*Q. The new cost function is 75,000 + 5.*Q Now, to get the break-even Q, you need to know something about price (or marginal revenue).