Stephens, Inc., wants to determine the minimum dollar volume and unit volume needed at its new facility to break even.

Approach

The firm first determines that it has fixed costs of $$10,000$ this period. Direct labor is $$1\mathrm{.}50$ per unit, and material is $$\mathrm{.}75$ per unit. The selling price is $$4\mathrm{.}00$ per unit.

Calculate the break$-$even point in dollars and in units $($must include steps and show your work$)$:

Page $1$ of $2$

$1.($Lines intersection point$)$

$2.($Red line$)$

$3.($Blue line$)$