SOLUTION: Please help solve this and provide workings, thanks. Commodore Systems sells its accounting software at $500 for each unit. The company�s manufacturing cost for one unit of softwa

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Question 1021655: Please help solve this and provide workings, thanks.
Commodore Systems sells its accounting software at $500 for each unit. The company�s manufacturing cost for one unit of software is $20. The fixed cost per month for the company is $19,200.
1) Define the break even level
2) Find the break even quantity
Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website!
Let = number of software units
Their total income from sales is:

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[ profit ] = [ income from sales ] - [ total cost ]
Their total cost is:

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The break even level is where the profit is zero,
so: [ income from sales ] = [ total cost ]

and

The break even level is $20,000
The break even quantity is 40
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check:

OK
Here is the plot of profit on vertical axis
and number of units on horizontal axis