Selling Selling Price Price 25 $ 30,020.oo 525 1,448.57 50 $ 15,020.00 55o 1,383

Question

Selling Selling Price Price 25 $ 30,020.oo 525 1,448.57 50 $ 15,020.00 55o 1,383.64 75 $ 10,020.00 575 1,324.35 100 7,520.0o 600 1,270.00 125 $ 6,020.0o 625 1,220.00 150 $ 5,020.00 650 1,173.85 175 $ 4,305.71 675 $1,131.11 200 $ 3,770.0o 700 1,091.43 225 $ 3,353.33 725 1,054.48 250 3,020.0o 750 $1,020.00 275 2,747.27 775 987.-74 300 $ 2,520.0o 800 $957-50 325 2,327.69 825 929.09 350 2,162.86 850 $902.35 375 2,020.00 875 877.14 400 1,895.oo 900 853.33 425 1,784.71 925 830.81 450 1,686.67 950809.47 475 1,598.95 975 789.23 500 1,520.00 10oo $ 770.00

Explanation / Answer

At  break-even point ,

Total cost = Total Revenue

=> Total Variable cost + Total Fixed cost=Total Revenue

=> 20*q+750,000 = SP*q (SP=  break even selling price,q= break even quantity)

=>SP= (20*q+750,000)/q

=>SP=20+750,000/q is the equation that satisfies the break even selling price.

at q=500, SP=20+750,000/500=1520

therefore the  break even selling price is $ 1520 that occurs at break even quantity of 500.

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