Question 4: US-based CamTech has been making solar-powered security video cameras for the industrial market for many years. The company is considering making a solar-powered home security camera for exterior use. Popular cameras with similar features typically retail for $95-$150 each. To differentiate, they plan to offer a camera that can be repositioned remotely from a smart phone app, assuming customers may be willing to pay more. To manufacture the camera will require $530,000 in fixed costs, and the variable cost per unit will be $57.00 (for parts, materials, labor). Management wants to determine the price it should charge to the retailer.

What is the break-even point (BEP) in units at each of these three prices to retailers?

BEP units at $89.00 number of units:

BEP units at $99.00 number of units:

BEP units at $109.00 number of units: