To Determine the Break-Even Point, or the Number of Units

question 62

Multiple Choice

To determine the break-even point, or the number of units that must be sold so that no profit or loss occurs, an economist uses the formula where P is the selling price per unit, x is the number of units that must be sold to break even, C is the cost to make each unit, and F is the fixed cost. A business analyst has determined that the selling price for a laser printer is $1800. The cost to make one laser printer is $960, and the fixed cost is $289,800.
Find the break-even point.

• A) 161 printers
• B) 345 printers
• C) 105 printers
• D) 1455 printers
• E) 615 printers

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