Handheld fiber optic meters with white light polarization interferometry are useful for measuring temperature, pressure, and strain in electrically noisy environments. The fixed costs associated with manufacturing are $800,000 per year. If variable costs are $290 per unit and the company sells 4000 units per year, at what selling price per unit will the company break even?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
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Handheld fiber optic meters with white light polarization
interferometry are useful for measuring temperature,
pressure, and strain in electrically noisy
environments. The fixed costs associated with manufacturing
are $800,000 per year. If variable costs
are $290 per unit and the company sells 4000 units
per year, at what selling price per unit will the company
break even?

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