Answer to Question #323286 in Financial Math for mafi

Question

8. A small home business set up with an investment of $ 10,000 for equipment. The business manufactures a

product at a cost of br. 0.64 per unit. If the product sales for Br. 1.20 per unit how many units must be sold

before the business breaks even?

Answer 1

The number of units that must be sold before the business breaks even is:

$BEP = 10,000/(1.2 - 0.64) = 17,857.14$ units.