A manager has determined that a potential new product can be sold at a price of...
A manager has determined that a potential new product can be sold at a price of $20.00 each. The cost to produce the product is $10.00, but the equipment necessary for production must be leased for $75,000 per year. What is the break-even point?
Group of answer choices
A) 2,500 units.
C) 7,500 units.
D) 10,000 units.
B) 5,000 units.
E) 25,000 units.
Homework Answers
| Break-even point = Fixed expenses/Unit Contribution margin |
| Break-even point = 75000/(20-10)= 7,500 units. |
| 7,500 units is correct option |
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