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blue corp. shows monthly fixed costs of $1,797 and per-unit cost of $9.28. it sells 411 units in a month. what is the minimum price blue corp. must sell each unit for to break even?

Sagot :

Blue corp. has fixed cost of $1797 per month and $9.28 per unit and company sells 411 units then minimum price of selling each unit to break even is $13.65.

As given in the question,

Blue corp. has:

Monthly fixed cost of units = $1797

Cost of per unit = $9.28

Total number of units sells by Blue corp. in a month = 411

Let C be the total cost as per given condition of fixed cost, per units charges and total units sells

C = 1797 + 9.28( 411)

⇒ C= 1797 + 3814.08

⇒ C = $5611.08

let 'x' be the minimum price of each unit for break even sells by Blue corp.

Then,

411x = $5611.08

⇒ x = 5611.08 /411

⇒ x= $13.65

Therefore, Blue corp. has fixed cost of $1797 per month and $9.28 per unit and company sells 411 units then minimum price of selling each unit to break even is $13.65.

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