Answer to Question #323318 in Financial Math for mooooo

Question

Franco's company makes tomato paste. His fixed costs are $23,000. The variable cost to make a case is $10. He will price the cases at $25. What are the sales he must reach in order to break even?

Answer 1

The sales he must reach in order to break even are:

$BEP = 23,000/(25 - 10) = 1,533.33$ units.