Toys 4 u manufactures a toy that it sells for $30 each. The variable cost per toy is $10 and the fixed cost for this product line are $100 000 per year .
a) what is the break even point in units?
b) what is the break even sales revenue ?
Toys 4 u manufactures a toy that it sells for $30 each. The variable cost per toy is $10 and the fixed cost for this product line are $100 000 per year .
a) what is the break even point in units?
b) what is the break even sales revenue ?
this is what i attempted for part a
given = MP ( market price )
VC ( variable cost )
FC ( fixed cost )
P ( profit )
q ( quantity )
MP = 30
VC = 10
FC = 100 000
P = 0
Tc = FC + VC (q )
TC = 100 000 + 10(q)
Sub in values into 1
0 = R - tc
( mp ) (q) - tc
0 - ( 10 ) (q) - tc
0 = 10q - [ 100 000 + q ]
0 = 10q -100 000 - q
100 000 = 9q
q = 11 111 . 11
i got the answer wrong but not sure where i went wrong or what i did wrong