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Question 854416: hello, kindly provide solution to this question
a company is about to bring a new generating unit into production at a fixedd cost of $300,000 . it will cost the company $0.025 per kilowat-hour to generate electrical power which they can sell for 0.075$ per kwh.
required
determine the break even quantity in millions of kwh and break even dollar of sales
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! a company is about to bring a new generating unit into production at a fixedd cost of $300,000 . it will cost the company $0.025 per kilowat-hour to generate electrical power which they can sell for 0.075$ per kwh.
required
determine the break even quantity in millions of kwh and break even dollar of sales
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Total Cost:: 300,000 + 0.025x
Total Revenue:: 0.0755x
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Break-even equation:
cost = revenue
300,000 + 0.025x = 0.0755x
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300,000 = 0.0505x
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x = 300,000/0.0505
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x = 5,940,594.059 kwh
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Cheers,
Stan H.
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