Question

A company sells pens at 5 per unit.The fixed cost is 3200 and variable cost is 25% of total revenue.Find the quantity the company must sell to cover its fixed cost

Answer 1

Answer:

640

Explanation:

Company has to sell 640 pens to cover fixed cost

3200 because 640 pens sold @ 5 will earn

(for the company)

5*640

=3200