Need to sell 800 games to break-even.
Step-by-step explanation:
DATA:
Selling price = $20
Variable cost = $5
Fixed cost = $12000
Break even units = x
Formula:
Break even (units) = [tex]\frac{Fixed cost}{Selling price - Variable cost}[/tex]
Solution:
Break even (units) = [tex]\frac{Fixed cost}{Selling price - Variable cost}[/tex]
x = [tex]\frac{12000}{20 - 5}[/tex]
x = [tex]\frac{12000}{15}[/tex]
x = 800 units
Therefore, you need to sell 800 games to break-even.
Keyword: break even
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