Question

. A small home business is set up with an investment of Birr 1,000,000 for equipment. The business manufactures a product at a cost of Birr 60 per unit. If the product sells for Birr 140, how many units must be sold before the business breaks even?

Answer 1

12,500

Explanation:

P = R-E

b.e.p : P=0

R=E

140x = 1000000 + 60 x

80x = 1000000

x=12,500