Question

A manufacturer produces a product which it sells for $60 per unit. The variable cost per unit is $20 and the fixed cost per month is $10,000. 

1.  How many units must be sold per month to break even?

a. 167      b. 500      c. 400      d. 250      e. None of these

Answer 1

$Break.even.units = \frac{10000}{60-20}=250$

The answer is d. 250