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Break Even Quantity and assets/liabilities

7. If assets are $7,000 and capital is $2,000, what are liabilities?
8. If capital is $17,000 and liabilities are $8,000, what are assets?
9. You are given the following information for Firm XYZ:
Fixed operating costs = $500,00
Variable operating costs per unit = $40/unit
Sales price per unit = $50/unit
Calculate the break-even point in units for:

10. A firm has fixed expenses of $3,500 per month and will sell its product for $30.00. Variable expenses are $28.00 per unit.
a. How many units must be sold for the firm to break even?

Solution Preview

Assets = Liabilities + Capital

7. Liabilities = $7000 - $2000 = ...

Solution Summary

A break even quantity for assets and liabilities are analyzed. The amount of units required to sell for the firm to break even is given.

$2.19