by doubling capacity would add US$ 1,500,000 to the fixed costs. If the selling price is...

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by doubling capacity would add US$ 1,500,000 to the fixed costs. If the selling price is...

by doubling capacity would add US$ 1,500,000 to the fixed costs. If the selling price is US$ 20 and the cost of manufacturing is US$ 5 (VC) how additional many units would PFF need to sell to break even?

a.100000

b.75000

c.300000

d. cant be determine

business Operations-Management

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Answer 1

Answer #1

Break-even analysis is a technique by which business identify the sales volume when the total cost and total revenue is equal. So, the company neither makes profit nor loss.

Break-even analysis is important for business because it help in drafting good business plan by determining cost structure and the volume required to cover the cost in order to make profit.

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Answer 2

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