What is the break even quantity for the following situation? FC is $1,200 per week, Variable cost is $2 per unit and Revenue is $6 per unit. A) 100. B) 200.
C) 600.
D) 1,200.
E) 300.

he Break-even quantity is 300 units.

Explanation:

The computation of the break even quantity is shown below

Given that

Fixed costs, FC = $1,200 per week

Variable costs, VC = $2 per unit

Revenue = $6 per unit

Based on the above information

Let us assume the break-even quantity be Z

As we know that

Total Costs = Total Revenue

Fixed costs + Variable costs = Price per unit × Quantity sold

$1,200 + ($2 x Z) = ($6 × Z)

1200 + 2Z = 6Z

4Z = 1200

Z = 300

Hence, the Break-even quantity is 300 units.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30