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How many widgets must sell to break eve

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Reference no: EM132987281

You own a small manufacturing business that produces widgets. You have spent $100,000 acquiring the fixed assets you need to produce widgets. Each widget costs you $4 to make and they sell for $22 each, so your variable cost is 18.2% of the overall revenue.

Problem 1: At your current level of operating leverage, how many widgets must you sell to break even?

Option 1: 4,546
Option 2: 9,450
Option 3: 18,200
Option 4: 5,556

Reference no: EM132987281

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