Answer:
12,500 units
Step-by-step explanation:
Given:
Selling cost of the pump = $10
Variable cost of producing each unit = 60% of selling cost
or
Variable cost of producing each unit = 0.60 × $10 = $6
Monthly fixed cost = $50,000
Now,
The profit per unit = Selling cost - Variable cost
or
The profit per unit = $10 - $6 = $4
Therefore,
The breakeven point =
or
the breakeven point =
or
the breakeven point = 12,500 units