The oliver company plans to market a new product. based on its market studies, oliver estimates that it can sell up to 5,500 units in 2005. the selling price will be $5 per unit. variable costs are estimated to be 50% of total revenue. fixed costs are estimated to be $5,600 for 2005. how many units should the company sell to break even?

2240 units

Step-by-step explanation:

Given

Fixed cost=$ 5600

variable cost=50 % of total revenue

selling price=$ 5

Let x be the no of unit Produced

Revenue=5x

variable cost

Total cost=5600+2.5x

For break even

Total cost= revenue

5600+2.5x=5x

2.5x=5600

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