Break-Even Point Radison Enterprises sells a product for $103 per unit. The variable cost is $70 per unit, while fixed costs are $217,800. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $110 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $110 per unit units

Instructions are below.

Explanation:

Giving the following information:

Break-Even Point Radison Enterprises sells a product for $103 per unit. The variable cost is $70 per unit, while fixed costs are $217,800.

To calculate the break-even point both in dollars and units, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 217,800/ (103 - 70)

Break-even point in units= 6,600 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 217,800/ (33/103)

Break-even point (dollars)= $679,800

Now, the selling price is $110:

Break-even point in units= 217,800/(110-70)= 5,445 units

Break-even point (dollars)= 217,800/ (40/110)= $598,950

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know