Question

The capital expansion will cost 320,000. they are planning on receiving a revenue of 3.00 per unit and a varible cost of 1.20 per unit. How many units are needed to break even?

Answer 1

177,777.78

Step-by-step explanation:

Breakeven point is the number of units produced and sold at which net income is equal to zero

Break even point = fixed cost / price - variable cost

320,000 / 3 - 1.2 = 177,777.78