Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to average $0.75 per unit.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Smithson cutting is opening a new line of scissors for supermarket distribution.  Please write the answers clearly I am 60 years old and hard for me to understand thank you.  Please write out the steps

 

 

• S7.16
Smithson Cutting is opening a new line of scissors for supermarket distribution. It
estimates its fixed cost to be $500.00 and its variable cost to be $0.50 per unit.
Selling price is expected to average $0.75 per unit.
a. What is Smithson's break-even point in units?
b. What is the break-even point in dollars? PX
Transcribed Image Text:• S7.16 Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to average $0.75 per unit. a. What is Smithson's break-even point in units? b. What is the break-even point in dollars? PX
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