Math

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.

Respond to this Question

First Name

Your Answer

Similar Questions

  1. accounting

    This year , Kirby company sold 35,000 units of production at $16 per unit. Maunfactoring and selling the product required $120,000 of mixed manufacturing costs and $180,000 of fixed selling and administrative expenses. This years variable …
  2. accounting

    "Harris Company manufactures and sells a single product. A partically completed schedule of the company's total and per unit cost over the relevant range of 30,000 to 50,000 per units produced and sold are: United produced and Sold: …
  3. economics

    You’re the manager of global opportunities for a U.S. manufacturer, who is considering expanding sales into Europe. Your market research has identified 3 potential market opportunities: England, France, and Germany. If you enter …
  4. Math, mathematics of finance

    I am stuck on these two math questions. If nyone could help me solve them it would be greatly appreciated! Here is the information: Engineering estimates indicate that the variable cost of manufacturing a new product will be $35 per …
  5. Algebra

    The Oliver Company plans to market a new product. Based on its market studies, Oliver estimates that it can sell up to 4,500 units in 2005. The selling price will be $2 per unit. Variable costs are estimated to be 20% of total revenue. …
  6. accounting

    Mendez Company currently produces and sells 20,000 units of product at a selling price of $10. The product has variable costs of $4 per unit and fixed costs of $50,000. The company currently earns a total contribution margin of?
  7. Finance

    Given: Jay Letterman has just (year: 2012) become product manager for Avenir. Avenir is a consumer product with a unit retail price of $1.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. Avenir and its …
  8. Break-Even Analysis

    Given: Jay Letterman has just (year: 2012) become product manager for Avenir. Avenir is a consumer product with a unit retail price of $1.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. Avenir and its …
  9. CVP Analysis - Business Math

    Engineering estimates show that the variable cost of manufacturing a new product will be $35 per unit. Based on market research, the selling price of the product is to be $120 per unit and variable selling expense is expected to be …
  10. Managerial Economics

    You’re the manager of global opportunities for a U.S. manufacturer, who is considering expanding sales into Europe. Your market research has identified three potential market opportunities: England, France, and Germany. If you enter …

More Similar Questions