Question

To find the number of units that gives break-even for the product, solve the equation R C. Round your answer to the nearest whole unit A manufacturer has total revenue given by the function R = 90x and has total cost given by C 35x + 17,000, where x is the number of units produced and sold. A, 55 units
B. 125 units
C. 136 units
D. 309 units

Answer 1

Answer:

The correct answer is D.

Step-by-step explanation:

Giving the following information:

R = 90x

Total cost= 35x + 17,000

x= is the number of units produced and sold

Now, we know that:

Unitary variable cost= 35

Fixed costs= 17,000

Selling price per unit= 90

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 17,000 / (90 - 35)

Break-even point in units= 309 units