A business produces 5,000 units per month.Costs include: $12,000 on raw materials,$20,000 on operators and $14,000 on sales people.Other costs of running the factory were $50,000 for rent and $30,000 on other fixed overheads.In order to break even the selling price per unit will have to be:
A)$25.20
B)$29.60
C)$20.30
D)$28

Question

Quizplus · Accepted Answer

Explanation:Total costs = $12,000 + $20,000 + $14,000 + $50,000 + $30,000 = $126,000Selling price per unit = $126,000 / 5,000 = $25.20

A Business Produces 5,000 Units Per Month