To determine the break-even point, or the number of units that must be sold so that no profit or loss occurs, an economist uses the formula where P is the selling price per unit, x is the number of units that must be sold to break even, C is the cost to make each unit, and F is the fixed cost. A business analyst has determined that the selling price for a laser printer is $1800. The cost to make one laser printer is $960, and the fixed cost is $289,800.
Find the break-even point.
A) 161 printers
B) 345 printers
C) 105 printers
D) 1455 printers
E) 615 printers

Question

To determine the break-even point, or the number of units that must be sold so that no profit or loss occurs, an economist uses the formula  where P is the selling price per unit, x is the number of units that must be sold to break even, C is the cost to make each unit, and F is the fixed cost. A business analyst has determined that the selling price for a laser printer is $1800. The cost to make one laser printer is $960, and the fixed cost is $289,800.
Find the break-even point.
A) 161 printers 
B) 345 printers 
C) 105 printers 
D) 1455 printers 
E) 615 printers

Quizplus · Accepted Answer

The Answer of To determine the break-even point, or the number of units that must be sold so that no profit or loss occurs, an economist uses the formula  where P is the selling price per unit, x is the number of units that must be sold to break even, C is the cost to make each unit, and F is the fixed cost. A business analyst has determined that the selling price for a laser printer is $1800. The cost to make one laser printer is $960, and the fixed cost is $289,800.
Find the break-even point.
A) 161 printers 
B) 345 printers 
C) 105 printers 
D) 1455 printers 
E) 615 printers

To Determine the Break-Even Point, or the Number of Units