A business produces 5,000 units per month.It spends $12,000 on raw materials.It pays wages of $20,000.Other costs include $50,000 for rent,paid by the month.In order to break even the selling price per unit will have to be:

Question

​A business produces 5,000 units per month.It spends $12,000 on raw materials.It pays wages of $20,000.Other costs include $50,000 for rent,paid by the month.In order to break even the selling price per unit will have to be:

Quizplus · Accepted Answer

To calculate the break-even selling price per unit, add all the costs together ($12,000 for raw materials + $20,000 for wages + $50,000 for rent = $82,000 total costs) and divide by the number of units (5,000). This gives $82,000 / 5,000 = $16.4 per unit.

​A Business Produces 5,000 Units Per Month

A Business Produces 5,000 Units Per Month