Use the following setup for question
A firm's fixed costs are $10 million.It sets the price at $1800 per unit and has marginal costs of $1,000.
-The break-even quantity is
A)10000
B)5,555
C)12,500
D)5,000

Question

​Use the following setup for question
A firm's fixed costs are $10 million.It sets the price at $1800 per unit and has marginal costs of $1,000.
-​The break-even quantity is
A)​10000
B)5,555
C)12,500
D)​5,000

Quizplus · Accepted Answer

The break-even quantity is calculated by dividing the fixed costs by the difference between price and marginal cost: $10,000,000 / ($1,800 - $1,000) = 12,500 units.

​Use the Following Setup for Question

Use the Following Setup for Question