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break-even in units for revenue to equal total cost

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22 Assume a fixed cost for an investment in a piece of equipment of $15,000, a variable cost to produce each unit of product with the equipment at $10, and a selling price for the finished product of $25. Which of the following is the break-even in units that would have to be produced and sold for total revenue to equal total cost?

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Solution Summary

Your tutorial shows you how to compute break-even, computes it for you in Excel, and proves the solution works. This is now a template for use on other problems.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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