Question

A firm fixed cost is 5000 birr and the variable cost per unit of output is 5 birr selling price per unit is 10 birr at what numbers of units will break even occur

Answer 1

sell 1000 units to break even

Explanation:

cost = 5000 + 5u

revenue = 10u

For breakeven point, set cost = revenue

5000 + 5u = 10u

5000 = 5u

1000 = u