MHB Computer Company's Break Even Point: 30000 Computers

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The computer company plans to produce 30,000 computers at a selling price of $700 each, with fixed costs of $5,000,000 and total variable costs of $6,000,000. To find the break-even point, the total revenue must equal the sum of fixed and variable costs. The break-even point occurs when revenue from selling the computers matches the total costs, which is calculated as revenue = number of computers sold x selling price. Clarification is sought on the calculation process, with a request for a final answer. The discussion emphasizes understanding the break-even formula rather than simply providing the answer.
Suraphel
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Dear All,
Please help me.
A computer company plans to produce 30000 computer next year. They will sell for \$700 each. The fixed cost of operation care \$5000000 total variable cost are \$6000000. What is the break even point?
 
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at the break even point, revenue - (fixed cost + variable cost) = 0

You are given both fixed and total variable costs ... revenue is number of computers sold time \$700
 
skeeter said:
at the break even point, revenue - (fixed cost + variable cost) = 0

You are given both fixed and total variable costs ... revenue is number of computers sold time \$700

A little bit confused please put the final answer.
Thanks in advance.
 
Suraphel said:
A little bit confused please put the final answer.
Thanks in advance.
What are you confused about? Please let us know.. It'll give us a better idea about how to respond. We are not going to simply post the answer though you have essentially been give the solution already.

-Dan
 

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