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

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

To determine whether the company breaks even when 200 units are sold, we need to calculate the total revenue and total cost at that specific level of sales.

First, let's calculate the total revenue:
Total revenue = Selling price per unit x Number of units sold
Total revenue = $25 x 200 units
Total revenue = $5,000

Next, let's calculate the total cost:
Total cost = Fixed cost + (Unit cost x Number of units sold)
Total cost = $3,000 + ($12 x 200 units)
Total cost = $3,000 + $2,400
Total cost = $5,400

Now, we compare the total revenue and total cost:
If the total revenue is equal to the total cost, then the company breaks even.
If the total revenue is greater than the total cost, then the company makes a profit.
If the total revenue is less than the total cost, then the company incurs a loss.

In this case, the total revenue is $5,000 and the total cost is $5,400. Since the total cost is greater than the total revenue, the company does not break even when 200 units are sold.

Therefore, the answer is (b) No.