You are determining whether to add a new product to an existing facility. You determine the fixed cost will be $50,000 for the year to add up to 1000 units of capacity per month. Variable cost will be $10 per unit. You believe demand will be 800 units per month at a price of $20 per unit. What is the break-even point?
$10
5,000 per month
417 per month
None of the above