Question

The Oliver company plans to market a new product. Based on its market studies, Oliver estimates that it can sell up to 5,000 units in 2005. The selling price will be $2 per unit. Variable costs are estimated to be 20% of total revenue. Fixed costs are estimated to be $5,600 for 2005. How many units should the company sell to break even?

a.

2,333 units

b.

5,600 units

c.

2,800 units

d.

3,500 units

e.

5,000 units
​

Answer 1

the answer is oliver needs to sell 5600 unite