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Sagot :
Answer:
Break-even point for the manual process= 281.11 unit
Explanation:
Break-even point is the level of activity at which a firm must operate such that its total revenue will equal its total costs. At this point, the company makes no profit or loss because the total contribution exactly equals the total fixed costs.
Break even point in units is calculated using this formula:
Break even point in units = Total general fixed cost/ (selling price - Variable cost)
Break-even point for the manual process:
Break-even point in units = $26,380/(99- 5.16) = 281.11 units
Break-even point for the manual process= 281.11 units
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