A manufacturer has fixed costs of $10000, a variable cost of $10 per unit of output,...
A manufacturer has fixed costs of $10000, a variable cost of $10 per unit of output, and break even volume of 50000 units what should the manufacturers unit cost be in order to break even?
Homework Answers
Break-even unit cost is calculated by using the following formula:-
= (Total fixed cost/break even unit volume) + Variable Cost per unit.
=($10,000/50,000)+$10
Break-even unit cost =$10.2
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