Assume a fixed cost for a process of $100,000. The variable cost to produce each unit of product is $10, and the selling price for the finished product is $50. Ignoring inventory, how many units must the firm sell to break even?

Fill in the blank(s) with the appropriate word(s).


2,500 units

Contribution margin per unit = $50 - $10 = $40. Break even = $100,000/$40 = 2,500.

Business

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