Total cost is $122 (variable cost+fixed costs)
Marginal cost is $2. This is the cost of producing each additional unit of a good. 10/$20= $2 per unit and 11/$22= $2/unit so the cost of each additional unit is $2.
B. the response would be a simple yes or no.
Answer:
417 units
Explanation:
The formula to compute the break-even point in units is shown below:
= (Fixed expenses ) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
So, the break-even point in units is
= ($5,000) ÷ ($20 - $8)
= $5,000 ÷ $12
= 417 units
So, the 417 units is to be sold for break-even
