Break-even in units
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Michael Vick has written a self improvement book that has the following cost characteristics:
Selling Price $16.00 per book
Variable cost per unit:
Production $4.00
Selling & administrative 2.00
Fixed costs:
Production $88,000 per year
Selling & administrative 18,000 per year
How many units must be sold to break-even?
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Solution Summary
Michael Vick has written a self improvement book that has the following cost characteristics:
Selling Price $16.00 per book
Variable cost per unit:
Production $4.00
Selling & administrative 2.00
Fixed costs:
Production $88,000 per year
Selling & administrative 18,000 per year
How many units must be sold to break-even?
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