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March 30, 2017

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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

  • Math - ,

    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

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