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Ue the equation for the total cot C and total revenue R to find the number x of unit a company mut ell to break even. (Round to the nearet whole unit. ) C = 2. 5 x 14,000, R = 6. 23x

User Arajek
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1 Answer

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Answer:

2247 units must be sold to break even

Explanation:

C = 2. 5 x 14,000 [I will change this to C = 2. 5x + 14,000]

R = 6. 23x

The modified (corrected?) Cost equation, C = 2. 5x + 14,000, tells us the the company will receive 2.5 (currency units) for every unit sold, but that it has a fixed overhead cost of 14,000 units. If no units are sold, the cost to stay open is 14,000. The second equation, R=6.23x, tells us that the company receives 6.23 for each unit.

To find breakeven, we need a value of x, units sold, such that 6.23x = 14,000:

6.23x = 14,000

x = 14,000/6.23

x = 2247 units must be sold to break even

User Dezigo
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