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Question

e ! https://www.mathxl.com/Student/PlayerHomework.aspx?homeworkld-471804461&questionId;=10&flushedafalse;& er DS 412 Spring 2018 Homework: Homework 4-Capacity Planning (ChS7) Dongyu an Score: 0 of 6 pts 10 of 14 (13 complete) HW Problem S7.21 UN The following is given: $8.00/unit Variable cost $6.00/unit Fixed cost $52,000 Based on he given information, the break even point in units = units enter your response as a whole num ber, a est Enter your answer in the answer box and then click Check Answer ear All parts remaining

Explanation / Answer

At the breakeven point the revenue generated through sales will be equal to the costs incurred

If it is at n units, then

Cost of goods sold = sales price xno. of units =8n

Cost of production = variable cost per unit x no. of units + fixed cost

= 6n+52000

At breakeven point

8n = 6n+52000, which gives n=26000