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Zolol [24]
3 years ago
11

A manufacturer has a monthly fixed cost of $60,000 and a production cost of $16 for each unit produced. The product sells for $2

9 per unit. Find the break-even revenue.
Business
1 answer:
Sidana [21]3 years ago
3 0

Answer:

$133,928.57

Explanation:

Break even revenue = Fixed cost / contribution to sales ratio

Contribution to sales ratio = Selling price - Variable cost / selling price

Fixed cost = $60000

Variable cost= $16 per unit

Selling price = $29 per unit

Contribution to sales ratio = 29 - 16/ 29 = 13/29 = 0.448

Break even revenue = 60000/0.448 = $133,928.57

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