SOLUTION: A company is producing a product for $500, while incurs the following costs: Rent: $1500, raw material $220, transportation of material $80, insurance $2000, fixed salaries $15

Question 1162501:
A company is producing a product for $500, while incurs the following costs:
Rent: $1500, raw material $220, transportation of material $80, insurance $2000, fixed salaries $1500.
Calculate the break-even in unites. Show your calculations.

Answer by ikleyn(52878) (Show Source): You can put this solution on YOUR website!
.


The break-even is the number of units U, which satisfies this equation


    500*U = 1500 + 220 + 80 + 2000 + 1500,

or

    500*U = 5300.


From this point, find the number of units U on your own.

Do not forget to post your "THANKS" to me for my instructions/explanations.

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