question archive A solar energy company is planning an investment to produce 100,000 solar panel parts
A solar energy company is planning an investment to produce 100,000 solar panel parts
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A solar energy company is planning an investment to produce 100,000 solar panel parts. Fixed costs of the investment project are 90,000 USD. Unit variable cost for production is estimated as 8 USD. The unit sales price of the produced panel piece is determined as 20 USD. For this project, the breakeven point (where profit is zero) is required on the basis of sales and quantity. Which of the following answers is correct? 9.000, 120.000 O a. Ob. 7.500, 150.000 8.000, 140.000 ??. 6.000, 110.000 None
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| Brake even point units = Fixed cost / (Sales - Variable cost) |
| Brake even point units = 90000 / (20 - 8) |
| Brake even point units = 7,500 |
| Brake even point value = (Fixed cost / ((Sales - Variable cost)/Sales)) |
| Brake even point value = (90000 / ((20 - 8)/20)) |
| Brake even point value = 150,000 |
| Answer : b. 7,500 ; 150,000 |
