A company makes a certain product for $4 each and sells it for $8.If the company has overhead expenses of $10,000 per year,how many of its products must be made and sold to break even?
A)20,000
B)40,000
C)2,500
D)10,000

Question

Quizplus · Accepted Answer

The profit per product is $8 - $4 = $4. To cover the overhead expenses of $10,000, the company needs to sell $10,000 / $4 = 2,500 products to break even.

A Company Makes a Certain Product for $4 Each and Sells