This is a question that needs a break even solution as well as a dollars of sales revenue

Question

Assume that the sales price per unit is $50 and the variable cost per unit is $30. The fixed costs are $140,000. How many units must be sold to break even? How many dollars of sales revenue must be generated to break even?

Answer 1

Step 1: express the production cost and income bu selling.

let x be number of pieces produced.

production=fixed cost+x*variables cost/piece

=140,000+30.x (1)

Income =x*selling price/unit

= 50.x (2)

step 2: determine the break even point.

At break even the profit is zero,or income=production cost.

By equating (1) and (2)

50x=140000+30x

subtract 30x both sides

20x=140000

x=140000/20=7000 units.

The sales income=50*7000=350,000.$