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Determining the break even level of output

Question 1. The price of a product is $1 a unit. A firm can produce this good with variable costs of $0.50 per unit and total fixed costs of $100. Determine the break even level of output.

Question 2. Given the following information, answer the following questions.

TR = $3
TC = $1,500 + $2Q

a. What is the break-even level of output?

b. If the firm sells 1,300 units, what are its earnings or losses?

c. If sales rise to 2,000 units, what are the firm's earnings or losses?

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Finance Basics: Determining the break even level of output

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Finance Basics: Determining the break even level of output

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