Question

You have designed a battery that charges using a bicycle so people can deal with power...

You have designed a battery that charges using a bicycle so people can deal with power outages in Lebanon and stay fit. You've spent 16440$ to purchase the initial equipment to produce the setup, and each setup costs 765 to produce, and you plan on selling each unit to for 185$. How many units should you sell to break even (obtain a profit of zero)? (answer to two decimals even though in reality you should round up)

each setup cost 76$ to produce

Homework Answers

Answer #1
Initial Cost $16,440
Each Set up Cost $76
Selling Price per unit $185
Contribution per unit Selling Price - Set up Cost
Contribution per unit 185-76
Contribution per unit $        109
Units required for break-even Initial cost / contribution per unit
Units required for break-even 16440/109
Units required for break-even      150.83
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