# Question: question 1 abc manufacturing is unsure of the ideal price...

###### Question details

**Question 1.** ABC Manufacturing is unsure of the
ideal price to quote for one of their products, a pump. ABC's
president has asked you to do a break even analysis for the pump,
and to recommend the optimal price. The fixed costs (FC) associated
with manufacturing this particular product are $100,000, and the
variable costs (VC) are $50 per unit. ABC's president is
considering a selling price (P) for this product of $100. The
president wants to know how many units have to be sold in order to
break even (BEU).

- Analyze this operations management issue.
- Provide the algebraic equation (using BEU, FC, P, and VC as variables) for the breakeven analysis.
- Calculate and provide the numeric breakeven value.