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    Break-even Analysis for a Widget Company

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    Calculate the break-even for a Widget company given the following information:

    Sales Price Variable Cost per unit Fixed Costs
    Widgets $800 $550 $77,000

    Problem 2
    Based upon the information needed in problem 1, how many widgets must be produced to earn a profit of $50,000?

    © BrainMass Inc. brainmass.com June 3, 2020, 8:24 pm ad1c9bdddf
    https://brainmass.com/business/accounting/break-even-analysis-widget-company-136275

    Solution Preview

    Answer 1: Use the following formula:
    800Q = 77,000 + 550Q
    Now we solve for Q
    800Q - 550 Q = ...

    Solution Summary

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    $2.19

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