5,000 units do they have to sell at $100 to break even.
A cost is the sum of money used to produce something or render a service, which is now unavailable for use. In a business setting, the cost can be one of acquisition, in which case the cost is the money expended to acquire it. In this case, the input utilized to purchase the item is money.
The formula for Variable Costs. Multiply the cost of producing one unit of your product by the total number of items you have produced to determine variable costs. This formula appears as follows: Cost per unit times the total number of units equals total variable costs.
The cost of each unit of goods that a firm produces is referred to as variable cost per unit. Variable costs alter as changes take place in the company's level of production or activity. Changes in the industry have an impact on the unit variable cost; as more units of a good are produced, additional costs are incurred.
Therefore, Thus, option (A) is correct.
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