Question

The sales price of a product is $2 per unit; the variable cost is $1 per unit; and fixed costs total $1,000. how many units must be sold to break even?

Answer 1

Answer:

1000 units for breakeven

Explanation:

Let x be the number of units sold at breakeven.

The total sales at the point would be $2x.

Variable costs would be $1x and fixed costs are $1000.

Total costs are = $1x + $1000

At breakeven: Sales = Costs

Sales =m Costs

$2x = $1x + $1000

$1x = $1000

x = 1000 units.

At 1000 units the sales are equal to the costs ("breakeven").