Strasburg’s plans require a capital investment of $200 million if units per year at a sales...

Strasburg’s plans require a capital investment of $200 million if units per year at a sales price of $2 per unit. The Fixed costs per unit is $20 with variable cost $1.5 per unit what would be company’s operating break even quantity.

Expert Solution

Sales Price =2
Variable Cost =1.5
Operating Break even Quantity =Fixed Cost /(Sales Price-Variable Cost) =20/(2-1.5) =40

jeff jeffy answered 2 years ago

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