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If a Company Wants to Know How Many Units of a Certain

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If a company wants to know how many units of a certain product it must sell to make a desired level of profit,it should add the amount of profit to the numerator in the breakeven analysis.


Definitions:

Normal Good

A good for which demand increases as the income of the individual increases, showing a direct relationship between income and demand.

Auto Workers

Employees in the automotive industry who are involved in the manufacturing, designing, and maintenance of vehicles.

Marginal Revenue Product

The supplementary revenue created by the addition of one unit of a production input.

Product Price

The amount of money charged for a product or service, determined by cost, demand, and supply factors.

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