Sara sells Popsi, a new illegal drug (?), for 4.75 dollars per bottle. Its variable cost per bottle is 1.47 dollars. The drug has fixed operating costs of 4,490 dollars and fixed financing costs of 5,805 dollars. Sara needs some calculations for her successful illegal business. The breakeven quantity of sales in units is closest to A. 1,770. B. 2,167. C. 3,139. D. 7,003.
Sara sells Popsi, a new illegal drug (?), for 4.75 dollars per bottle. Its variable cost per bottle is 1.47 dollars. The drug has fixed operating costs of 4,490 dollars and fixed financing costs of 5,805 dollars. Sara needs some calculations for her successful illegal business. The breakeven quantity of sales in units is closest to A. 1,770. B. 2,167. C. 3,139. D. 7,003.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Sara sells Popsi, a new illegal drug (?), for 4.75 dollars per bottle. Its variable cost per bottle is 1.47 dollars. The drug has fixed operating costs of 4,490 dollars and fixed financing costs of 5,805 dollars. Sara needs some calculations for her successful illegal business. The breakeven quantity of sales in units is closest to
A.
1,770.
B.
2,167.
C.
3,139.
D.
7,003.
Expert Solution
Concept
Break even no of units are the number of units which are required to be sold to earn no profit/no loss i.e. it calculates the number of units which should be sold to cover all the fixed and variable cost.
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