SunBlush Technologies

Question

SunBlush Technologies is selling their product for $5.40 each. It costs SunBlush Technologies $3.80 to produce each unit and their fixed costs are $64,000 per month.

 

 

How many units must they sell per month to break even?

 

How many units must they sell to make a profit of $16,160 per month?

Answer 1

Hi Jason,

 

So let's put this into an equation.  Each product sells for $5.40 and costs $3.80 to produce.  Thus, the net profit on each product is 5.40-3.80= 1.60  Let's put this into an equation now:

 

1.60x-64000=16160

 

Hope this helps!