business problem

Question by m_motlop Reward: 100 Pond Points + 10 Knowledge Tokens Status: Pending a resolution
if a company's selling price is $5, variable cost is $3 and fixed costs are $100000, what is the break even sales point?



Reply from Dave User Rating:  84 Knowledge Tokens
I think the break even point is 50,000 units. Since the selling price is $5 and the variable cost is $3, that means a $2 profit on each unit. But to break even with the fixed costs, you would need to sell 50,000 units at a profit of $2 each.
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