You are a new manager that has just been hired and you want to know your break-even point for your department. Your cost are as follows: the sales price for your product is $20 per unit. your variable coat are $8.00 per unit. your fixed cost are $100,000 per year.

What is your B/E in units? (show work)

What if your average sales per customer was $50.00? How many customers would you need to break-even? (show work)

What would be more advantageous, lowering your variable cost by a dollar or lowering your fixed cost by $20,000? (show work)