Question

If the cost of producing a product that sells for $40 is 72,000 plus $32.00 per piece, then how many products must be sold to breakeven?

Answer 1

we are given:

Selling price=$40.00

Fixed cost=$72000.00

Cost per piece=$32.00

Let x products be sold to break-even then

$\\ \ 40x=7200+32x\\ \\ \ \Rightarrow 40x-32x=7200\\ \\ \ 8x=7200\Rightarrow x=\frac{7200}{8}=900$