Estimate brake-even point in units

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Reference no: EM1399160

Utah is a popular resort and is being developed as a hot new spring break destination. Unfortunately, Utah regularly faces shortages of fresh water. Ann has the entrepreneurial spirit and plans to open a business shipping barges to the town. Ann's accountant estimated fixed cost fo the project to be 2,500,000 and variable cost to be $50,000 per barge load. selling is expected to average $75,000 per barge load.

What is her brake-even point in units?

What is her break even point in dollars?

If she anticipates demand for 20 barges during the next year, should she enter this Business?

Reference no: EM1399160

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