Problem: Tim Taylor has written a self improvement book that has the following cost characteristics:
Selling Price
|
$16.00 per book
|
Variable cost per unit:
|
|
Production
|
$4.00
|
Selling & administrative
|
2.00
|
Fixed costs:
|
|
Production
|
$88,200 per year
|
Selling & administrative
|
25,500 per year
|
Required:
Question: How many units must be sold to break-even?