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