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15 September, 09:50

The variable cost for a product is $1, and the total fixed cost are $300,222. The company sells

the products for $8 each. How many products will the company have to sell to break even?

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  1. 15 September, 11:13
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    42,889

    Step-by-step explanation:

    The contribution margin of a product is $8 - 1 = $7. Then the number that must be sold to cover fixed costs is ...

    $300,222/$7 = 42,888.9

    To break even, the company must sell 42,889 products.
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