SOLUTION: Can someone please, please help me with this problem: Kellog Company sells a product at $60 per unit that has variable costs of $40. The company's break-even sales volume is $12

Algebra ->  Polynomials-and-rational-expressions -> SOLUTION: Can someone please, please help me with this problem: Kellog Company sells a product at $60 per unit that has variable costs of $40. The company's break-even sales volume is $12      Log On


   

Question 174149: Can someone please, please help me with this problem:
Kellog Company sells a product at $60 per unit that has variable costs of $40. The company's break-even sales volume is $120,000. How much profit will the company make if it sells 4,000 units?
a. $40,000
b. $80,000
c. $120,000
d. $240,000
Answer by Mathtut(3670) About Me  (Show Source):
You can put this solution on YOUR website!

the answer is C because everything over $120000 in sales is over the breakeven point.
:
If a company’s break-even point is 2000 units(120000 in sales), then once the company sells 2000 units, they will make no profit and no loss. For every additional unit sold above 2000, they will make a profit.