Computing break-even point for shock electronics


Question:

Shock Electronics sells portable heaters for $25 per unit, and the variable cost to produce them is $17. Mr. Amps estimates that the fixed costs are $96,000.

a. Compute the break-even point in units.

b. Fill in the table below (in dollars) to illustrate that the break-even point has been achieve

Sales                                      ----------------
-Fixed costs                           -------------------
-Totalvariable costs                ----------------
Net Profit(loss)                       ------------------

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Finance Basics: Computing break-even point for shock electronics
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