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cupoosta [38]
3 years ago
12

A company's fixed operating costs are $430,000, its variable costs are $2.10 per unit, and the product's sales price is $6.00. W

hat is the company's break-even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number.
Business
1 answer:
Marizza181 [45]3 years ago
4 0

Answer:

110,257 units.

Explanation:

Fixed operating costs (FC) = $430,000

Variable costs (VC) = $2.10 per unit,

Sales price (P) = $6.00 per unit.

The revenue, as a function of 'n' units produced, for this company is given by:

R(n)= (P-VC)n -FC\\R(n)= (6.00-2.10)n -430,000

The break-even point occurs when revenue is zero. The break-even point is:

0= (6.00-2.10)n -430,000\\n=\frac{430,000}{3.90} \\n=110,256.41

Rounding it up to the next whole unit, the sales volume needed to reach the break-even point is 110,257 units.

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According to the theory of 50, 20, 30, a person's salary should be divided into 3 buckets that are:

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5 0
3 years ago
Given the following data: Average operating assets $ 504,000 Total liabilities $ 23,520 Sales $ 168,000 Contribution margin $ 85
kipiarov [429]

Answer:

9%

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According to the given situation, the solution of return on investment is shown below:-

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