Respuesta :
A marketer's fixed costs are $400,000. The variable cost is $16 per unit, and the price of the product is $24 per unit. If the company wants to make a profit it has to sell more than 50000 units.
The break-even point is the factor at which overall value and total revenue are same, that means there's no loss or benefit in your small commercial enterprise. In different phrases, you've reached the level of manufacturing at which the costs of manufacturing equals the sales for a product. if your commercial enterprise's revenue is underneath the ruin-even factor, you have a loss. but in case your sales is above the point, you've got a earnings.
To calculate the units need to sell for profit follow the following steps:
Given:
Fixed cost = $400,000
Variable cost = $16
Selling price = $24
Profit volume ratio = ( selling price - variable cost / selling price ) * 100
Profit volume ratio = ( 24 - 16 ) * 100
Profit volume ratio = 33.33%
Break-even point (in $ sales) = Fixed cost / Profit volume ratio
Break-even point = $400,000 / 33.33%
Break-even point = $12,00,000
Therefore in order to earn a profit company must sell more than 50,000 units ( 1200000 / 24 = 500000 )
The profit volume (P/V) Ratio is the measurement of the fee of exchange of earnings because of a change in the extent of income. It's miles one of the essential ratios for computing profitability as it indicates contribution earned with respect to sales.
Learn more about the break-even point here brainly.com/question/12181423
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