100 units of a particular prod wher its tot prod cost £500.calc what price to sell its prod in order breakevn

Answer 1

Break Even Point is when you make sufficient sales to cover your costs. Anything more is profit. So, in this case, your production costs are £500 to produce 100 articles. That means each article costs £5 to make so if you sell all of them at £5 then you break even. Of course if you want a profit you need to calculate how much you want. If you accept a 40% profit margin then you would sell at £7 each (£5 x 40% = £2 so £5 + £2 = £7). If all articles are sold you would get £700 so tht's £200 profit plus your £500 costs which you could then invest again to make another 100 articles. Of course the £200 is gross profit from which you need to consider costs other than production costs such as tax, advertising, transport and so on. Let's say these costs are £60 then your Net Profit is £200 - £60 = £140.

Answer 2

£500/100 = £5

Answer 3

I think it's 5 dumb ***.