Gladstorm Enterprises Sells a Product for $60 Per Unit

question 94

Essay

Gladstorm Enterprises sells a product for $60 per unit. The variable cost is $20 per unit, while fixed costs are $85,000. Determine the
(a) break-even point in sales units and
(b) break-even point in sales units if the selling price increased to $80 per unit. Round your answer to the nearest whole number.

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Definitions:

Post Hoc

short for 'Post Hoc Ergo Propter Hoc', a logical fallacy where one assumes that since event Y followed event X, event X must have caused event Y.

Fallacy

A reasoning error that leads to a flawed argument.

Ice Cream

Ice Cream is a frozen dessert made from dairy products, such as milk and cream, combined with flavorings and sweeteners, often enjoyed as a treat.

Slot Machine

A gambling machine that creates a game of chance for its customers, often found in casinos.