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# break-even in widgets and dollars

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You own a company that manufactures and sells widgets. Your sales for last year were \$100,000. Each widget sells for \$8.50. The cost of material for each widget is \$4.00 and last years labor cost was \$285,000.00. The fixed costs for the operation are \$185,000. What is the break-even in widgets and dollars.

##### Solution Summary

The break-even in widgets and dollars is determined.

##### Solution Preview

If we divide \$100,000 sales by 8.5 we get the number of widgets sold = 11764.70 and if we assume the labor cost to be variable we get a per widget ...

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