Evergreen Fertilizer Company produces fertilizer The company

Evergreen Fertilizer Company produces fertilizer. The company\'s fixed monthly cost is $30,000 and its variable cost per pound of fertilizer is $0.16. Evergreen sells the fertilizer for $0.40 per pound. Determine the monthly break-even volume for the company.

Solution

For breakeven Q

Selling price = Variable cost per unit + fixed cost per unit

0.40 = 0.16 + 30000/Q

Q = 30000/0.24 = 125000