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18 February, 21:07

Waterway Industries has fixed costs of $15,000 per year. Its warehouse sells wine with variable costs of 70% of its unit selling price. How much in sales does Waterway need to break even per year?

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  1. 18 February, 21:26
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    50000 units sale per dollar price of the wine

    Step-by-step explanation:

    Fixed cost per year = $15,000

    Variable cost per bottle of wine = 70% of selling price

    To break even, the profits from the number of units sold = $15,000

    (30% of selling price) * X units = $15,000

    Or 15,000:0.3 = 50000 units per dollar price of wine
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