Mia Enterprises Sells a Product for $90 Per Unit

question 71

Essay

Mia Enterprises sells a product for $90 per unit. The variable cost is $40 per unit, while fixed costs are $75,000. Determine the
(a) break-even point in sales units and
(b) break-even point in sales units if the selling price increased to $100 per unit. If required, round answer to nearest whole number.

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Definitions:

Inflation

The pace at which prices for products and services generally ascend, reducing monetary value.

Money Supply

The aggregate value of financial assets existing in an economy at a certain time.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, often measured as the percentage increase in real GDP.

Tax Rates

The percentage at which an individual or corporation is taxed, which can vary depending on income level, type of good or service, and other factors.