A firm's total fixed cost (TFC) is $1,000 and unit variable cost (UVC) is $5. If...

A firm's total fixed cost (TFC) is $1,000 and unit variable cost (UVC) is $5. If market price of the product (P) is $10, what is the break-even quantity of sales?

Break-even quantity = TFC / (P - UVC) = __ units

Expert Solution

the formula is:

Break-even quantity = TFC / (P - UVC) =1000/(10-5)

=200 units

the Break-even quantity is 200 units

Rahul Sunny answered 2 years ago

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