Explore BrainMass

Breakeven point

A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, how much output must the firm product to break even?

Solution Preview

Given total fixed cost = $40,000
Average variable cost = $150
Suppose n units are required to make ...

Solution Summary

Breakeven point is denoted.