GG EDU Inc., expects a product to have a profitable life of between 1 and 5 years. He wants to know the breakeven number of units that must be sold annually to realize payback within each of the time periods of 1 year, 2 years, and so on up to 5 years. Find the breakeven number of units for each year up to 5 years with the cost and revenue estimates are as follows:

Fixed costs FC = initial investment of $ 80,000 with $ 1000 annual operating cost. Variable cost per unit v = $ 8

Revenue per unit r = Twice the variable cost for the first 5 years and 50% of the variable cost thereafter.

Answer rating: 100% (QA)

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