Question

Jane Corporation produces model toy cars. Each sells for $29.99. Its variable cost per unit is $14.25. Assuming it has a fixed cost of $314,800. What is the breakeven point for Jane Corporation

Answer 1

each unit sells at 29.99 and costs 14.25 to make, so each unit yields a profit of (29.99 - 14.25)

then simply divide the fixed cost (314,800) by the profit per unit (29.99-14.25) to find the # of units it will take to break even