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Calculate the break-even point in sales dollars

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Question - Peter Garcia Meza is considering buying a company if it will break even or earn net income on revenues of $80,000 per month. The company that Peter is considering sells each unit it produces for $5. Use the following cost data to compute the variable cost per unit and the fixed cost for the period. Calculate the break-even point in sales dollars. Should Peter buy this company?

At 8,000 units produced, total costs are $70,000.

At 68,000 units produced, total costs are $190,000.

Reference no: EM132530030

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