SOLUTION: A manufacturer sells his product at $23 per unit, selling all he produces. His fixed cost is $18,000 and his variable cost per unit is $18.50. The level of production at which the

Question 1188823: A manufacturer sells his product at $23 per unit, selling all he produces. His fixed cost is $18,000 and his variable cost per unit is $18.50. The level of production at which the manufacturer breaks even is
Answer by math_tutor2020(3817) (Show Source): You can put this solution on YOUR website!

x = number of units made and sold
C(x) = cost
C(x) = 18.50x+18000
R(x) = revenue
R(x) = 23x

Breakeven point occurs when the cost and revenue are the same, which produces a profit of 0 dollars.
R(x) = C(x)
23x = 18.50x+18000
23x-18.50x = 18000
4.50x = 18000
x = 18000/(4.50)
x = 4000

Answer: 4000 units

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