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A plant is currently producing 1 0 0 , 0 0 0 piece / year of product. The variable cost ( which is proportional to
A plant is currently producing pieceyear of product. The variable cost which is proportional to production rate is $ year. The fixed charges including overhead and general expenses are $ year. The plant sells all the product it produces and is currently making a profit of $ year.
Assume the price of the product does not change, the breakeven production rate in pieceyear is:
Hint: You need to find the price per unit first, Revenue price unit number of units.
Profit Revenue fixed costf variable cost.
Breakeven point means profit is zero.
Report your answer to decimal place. Do not include the units.
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