A Company Faces Fixed Costs of $100,000 and Variable Costs

question 113

Short Answer

A company faces fixed costs of $100,000 and variable costs of $8.00/unit.They plan to directly sell their product to the market for $12.00.How many units must they produce and sell to break even?
20,000
25,000
40,000
50,000
not enough information to calculate

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Definitions:

Particle Collision

An event where two or more particles come into contact with enough energy to cause a reaction or exchange of properties.

Successful Collisions

Interactions between reactant particles that result in a chemical reaction, dependent on factors like orientation and energy.

Cooled

The process of lowering temperature or the state of being less warm.

Molecules

Molecules are two or more atoms bonded together, forming the smallest fundamental units of a chemical compound that can take part in a chemical reaction.