8
algebraA business sells product A at $40 each and product B at $25 each. Fixed costs are $800. How many of product A must be sold (assuming no product B is sold) to break even?
A
15 units
B
20 units
C
25 units
D
32 units
Correct Answer: B
Choice B is the correct answer. Break-even when Revenue = Fixed Costs (no variable costs given, so we assume none).
Let = units of product A sold.
Equation:
Solution: 20 units of product A
Verification: Revenue = = Fixed costs ✓
💡 Strategic Tip: Break-even: revenue must cover all costs.
Choice A is incorrect because (loss).
Choice C is incorrect because (profit, past break-even).
Choice D is incorrect because (profit).