bassplayer347
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I am completely baffled by this question. How am I supposed to calculate the selling price with this data? Please help if you can:

The following data applies to a business:
• break-even output = 500 units
• fixed costs = £30 000
• variable cost per unit = £30.
The business is currently operating at its break-even output. Calculate its selling price. Show your workings.
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the_icy_goldfish
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whats the profit margin?
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bassplayer347
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(Original post by the_icy_goldfish)
whats the profit margin?
Do I need that? If so, which type (operating, gross...)?
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the_icy_goldfish
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(Original post by bassplayer347)
Do I need that? If so, which type (operating, gross...)?
gross, also yes. once you have that an costs, its easy from there.
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bassplayer347
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(Original post by the_icy_goldfish)
gross, also yes. once you have that an costs, its easy from there.
Well I'm assuming if they're operating at break-even output, that means their revenue is £15,000? What is the cost of goods sold then... £15,000? Is their gross profit margin just 0%?
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the_icy_goldfish
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wait is there any other part to the question? like at all? cause it could be 0% margin but a business wouldnt do that, the costs shouldnt be the same as the selling price
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bassplayer347
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(Original post by the_icy_goldfish)
wait is there any other part to the question? like at all? cause it could be 0% margin but a business wouldnt do that, the costs shouldnt be the same as the selling price
that's why i'm so confused... that's all the information we've been given.

i might just give up honestly, it's only 4 marks...
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