Math Problem Statement
A firm manufactures a product that sells for $12 per unit. Variable cost per unit is $7 and fixed cost per period is $ 1800. Capacity per period is 800 units. Perform a break-even analysis showing a detailed break-even chart.
Solution
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Math Problem Analysis
Mathematical Concepts
Break-even Analysis
Linear Equations
Revenue and Cost Functions
Formulas
Break-even Point (Units) = Fixed Costs / (Selling Price - Variable Cost)
Total Revenue = Selling Price × Quantity
Total Cost = Fixed Costs + (Variable Cost × Quantity)
Theorems
Break-even Theorem
Suitable Grade Level
Grades 10-12
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