The Oliver company plans to market a new product. Based on its market studies, Oliver estimates that it can sell up to 5,500 units in 2005. The selling price will be $3 per unit. Variable costs are estimated to be 10% of total revenue. Fixed costs are estimated to be $10,800 for 2005. How many units should the company sell to break even?
?
A. 4,000 units
B. 3,273 units
C. 5,500 units
D. 3,600 units
E. 10,800 units
Answer: A
Mathematics
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