Let b be the break even in units.
B/e in revenue = 772b
Variable cost to produce b units = 267b, and fixed cost is 202,000. Total cost is variable cost plus fixed cost.
B/e in revenue 772b = total cost i.e. 267b + 202,000
772b - 267b = 202,000
505b = 202,000
b = 400, so break even occurs at 400 units
Break even revenue = 400 x 772 = $308,800
2007-09-08 21:31:41
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answer #1
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answered by Sandy 7
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You have to sell 40 units to off set the cost. so, now u figure it out...have fun
2007-09-09 00:09:19
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answer #2
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answered by Touchstone 2
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