posted by Jamie
The Oliver Company plans to market a new product. Based on its market studies, Oliver estimates that it can sell up to 2,000 units in 2005. The selling price will be $5 per unit. Variable costs are estimated to be 20% of total revenue. Fixed costs are estimated to be $6,300 for 2005. How many units should the company sell to break even?
I tried calculating, but I don't know what to do with the 20%.
Help Please? Thank You.