Using the profit concept, it is found that the break-even point is of 61.6 units.
- Profit is given by revenue subtracted by cost.
- The break-even point is when the revenue is the same as the cost, which means that the profit is zero.
In this problem:
- Variable cost per unit x of $217, fixed cost of $5,420, thus, the cost equation is given by:
Selling price per unit of $305, thus, the revenue equation is given by:
The break-even point is the <u>value of x</u> for which:
Then
The break-even point is of 61.6 units.
A similar problem is given at brainly.com/question/4001746