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Murljashka [212]
3 years ago
12

A manufacturing company has the following fixed monthly costs and unit variable costs: Rent = $2,200 Utilities = $375 Variable c

osts for materials and assembly = $13.25/unit Monthly labor = $750 If its product sells for $24.99 per unit, how many units must it sell in a month to break even? Round your answer to the nearest whole number.
Mathematics
1 answer:
valentinak56 [21]3 years ago
3 0

A manufacturing company has the following fixed monthly costs and unit variable costs:

Rent = $2,200

Utilities = $375

Variable costs for materials and assembly = $13.25/unit

Monthly labor = $750

Given is the product is sold at $24.99 per unit

Let the number of units sold be x

Adding total cost = 2200+375+750=3325

Equation becomes:

3325+13.25x=24.99x

11.74x=3325

x= 283.21

So, rounding it to nearest whole number we get, 283 units.

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