BREAK-EVEN ANALYSIS A company's fixed operating costs are $500,000, its variable costs are $2.30 per unit, and the product's sales price is $4.80. What is the company's break even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number. units

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 8SQP
icon
Related questions
Question

3

BREAK-EVEN ANALYSIS
A company's fixed operating costs are $500,000, its variable costs are $2.30 per unit, and the product's sales price is $4.80. What is the company's break-
even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number.
units
Transcribed Image Text:BREAK-EVEN ANALYSIS A company's fixed operating costs are $500,000, its variable costs are $2.30 per unit, and the product's sales price is $4.80. What is the company's break- even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number. units
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Depreciation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning