Question

Julia can sell a certain product for $75 per unit. Total cost consists of a fixed overhead of $4000 plus production costs of $50 per unit. How many units must be sold for Julia to break even?

Answer 1

Answer = 160 units

Reason is 75 sell price less cost per unit = $25 profit per unit
Overhead cost is $4000. Divide fixed overhead cost $4000 by profit per unit $25 = 160