How many units must the producer sell to break-even

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Reference no: EM131798255

A producer can produce a product at a variable cost per unit of $6. The producer can sell the product for $10 each. If the fixed cost is $90,000

a. How many units must the producer sell to break-even?

b. What is revenue at 20,000 units? What is total cost at 20,000 units?

c. How many units must the producer sell in order to earn a profit of $60,000?

d. If the producer believes price can be raised without reducing the quantity you found in part c, what should the new price be to earn a profit of $75,000?

Reference no: EM131798255

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