Answer:
3,333 Units
Explanation:
BREAK EVEN POINT can be defined as the way in which total cost and total revenue are equal, which can simply means the point in which there is no net gain or net loss.
Total Fixed Cost / Price – Variable Cost
Total Fixed cost $10,000
Price $5
Variable cost 2
Hence:
$10,000 / ($5 - $2)
=$10,000/$3
= 3,333 units.
Therefore the client need to sell 3,333 units in order to break even.
