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2 answers

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 · answer #1 · answered by Sandy 7 · 0 0

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 · answer #2 · answered by Touchstone 2 · 0 0

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