A plant operation has fixed costs of$ | 50,000 per year and variable costs of $50 per unit. When the plant produces the maximum capacity, which is 7000 unit per year, the profit equals $1,800,000. What is the breakeven point (in units) of this plant? (Assume tha the unit selling price is constant

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
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A plant operation has fixed costs of$ | 50,000 per year and variable costs of $50
per unit. When the plant produces the maximum capacity, which is 7000 unit per year, the
profit equals $1,800,000. What is the breakeven point (in units) of this plant? (Assume that
the unit selling price is constant
Transcribed Image Text:A plant operation has fixed costs of$ | 50,000 per year and variable costs of $50 per unit. When the plant produces the maximum capacity, which is 7000 unit per year, the profit equals $1,800,000. What is the breakeven point (in units) of this plant? (Assume that the unit selling price is constant
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