SOLUTION: The break-even point for a business is given by the formula: B=F/P-V in which B= units sold to break-even point, F= fixed costs, P= price per unit, v= variable costs Network sys

Question 155258: The break-even point for a business is given by the formula: B=F/P-V in which
B= units sold to break-even point, F= fixed costs, P= price per unit, v= variable costs
Network systems is introducing a new network card. Suppose network Systems knows its fixed costs are $600,000, its variable costs are $500 per card, and it must sell 15,000 cards to break even the first year. What is the minimum price per unit it should charge?
Answer by jojo14344(1513) (Show Source): You can put this solution on YOUR website!
--------> working eqn
We know to Break Even, the total revenue should be zero(0)---> NO GAIN, NO LOST, IT'S BREAK EVEN, right?
We isolate the working eqn,, ,
These 3 values should equal to zero and isolating them:

-------------> Total Price of the units
To get MINIMUM PRICE PER UNIT:
=$0.08/card -----------> Final Answer
To check, go back working eqn:

--------------> Break even, NO GAIN, NO LOST!
Thank you,
Jojo
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