suppose you invest $12,000 in equipment to manufacture a new board game. Each game costs $5 in materials to manufacture and you

Question

2 years ago

5

plan to sell them for $20. How many games must you make to break even?

1 answer:

neonofarm [45] · Answer 1 · 2022-05-31T01:34:43+03:00

Need to sell 800 games to break-even.

Step-by-step explanation:

DATA:

Selling price = $20

Variable cost = $5

Fixed cost = $12000

Break even units = x

Formula:

Break even (units) = $\frac{Fixed cost}{Selling price - Variable cost}$

Solution:

Break even (units) = $\frac{Fixed cost}{Selling price - Variable cost}$

x = $\frac{12000}{20 - 5}$

x = $\frac{12000}{15}$

x = 800 units

Therefore, you need to sell 800 games to break-even.

Keyword: break even

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