An enterprise has annual fixed costs of $375,000 and a variable cost of $4 per unit of product. The product is sold for $75. a. Calculate how many units he must produce to break even. Round to the next whole number b. A change in the market increases its fixed costs by $3,000 and reduces its selling price by 20%. What is the new break-even quantity?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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An enterprise has annual fixed costs of $375,000 and a variable cost of $4 per unit of product. The product is sold for $75.
a. Calculate how many units he must produce to break even.
Round to the next whole number
b. A change in the market increases its fixed costs by $3,000 and reduces its selling price by 20%. What is the new break-even quantity?

 

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