Question

If fixed costs are $100,000, variable cost per unit is $40, and the selling price is $60, how many units must be sold for the firm to break even?

Answer 1

The units must be sold for the firm to break even exists 5,000.

What is the breakeven point?

The break-even threshold is reached when overall costs and total revenues are equal, leaving your small firm with no net benefit or loss. In other words, you've achieved the point in production where a product's revenues and production costs are equal.

In order to break even, they would require to sell at least 5,000 units

A Break-even point exists estimated by the formula:

Fixed costs ÷ (selling price - variable costs per unit) = Break-even point

substitute the values in the above equation, and we get

100,000 ÷ (60 - 40) = 5,000

Anything they sell above this number will start to make profits for the company.

The units must be sold for the firm to break even exists 5,000.

To learn more about breakeven point refer to:

brainly.com/question/9212451

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