Calculate and provide the numeric breakeven value

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Reference no: EM132283638

ABC Manufacturing is unsure of the ideal price to quote for one of their products, a pump. ABC's president has asked you to do a break even analysis for the pump, and to recommend the optimal price. The fixed costs (FC) associated with manufacturing this particular product are $100,000, and the variable costs (VC) are $50 per unit. ABC's president is considering a selling price (P) for this product of $100. The president wants to know how many units have to be sold in order to break even (BEU).

Analyze this operations management issue.

Provide the algebraic equation (using BEU, FC, P, and VC as variables) for the breakeven analysis.

Calculate and provide the numeric breakeven value.

Reference no: EM132283638

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