Answered

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A company is considering an investment in a machine that it believes will speed up production of a product. The machine will cost the company ​$. Products produced using the machine will sell for ​$ per unit. The variable cost per unit incurred producing the product is believed to be ​$. What quantity of sales is required for the company to break even if it purchases the​ machine?

Sagot :

Zvikoidn

Answer:

133,334 units

Explanation:

Note : I have attached the full question below

Break even point is the level at which a company makes neither profit nor a loss.

Break Even (units) = Fixed Cost ÷ Contribution per unit

Where,

Contribution per unit = Unit Selling Price - Unit Variable Cost

                                   = $ 25 - $10

                                   = $15

Therefore,

Break Even (units) = $ 2,000,000 ÷ $15

                              = 133,334 units

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