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

Grasp the significance of adjusting project management approaches based on the project’s complexity.

Learn the benefits and timing for project celebrations and the expression of appreciation.

Appreciate the importance of including the client in the project process and celebrations.

Understand the concept of cognitive dissonance within the context of client feedback.

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Definitions:

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and satisfy its investors.

Leveraged Value

Utilizing a range of financial tools or leveraging debt to amplify the possible gains from an investment.

Capital Structures

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, constituting how a firm finances its overall operations and growth.

Tax Shelters

Investment strategies or financial arrangements used to minimize tax liabilities, often by deferring or reducing taxable income.