A division of the Gibson Corporation manufactures bicycle pumps. Each pump sells for $10, and the variable cost of producing each unit is 60% of the selling price. The monthly fixed costs incurred by the division are $50,000. What is the break-even point for the division? (Round your answers to the nearest whole number.)(x,y)=

Answer:12,500 unitsStep-by-step explanation:Given:Selling cost of the pump = $10Variable cost of producing each unit = 60% of selling costorVariable cost of producing each unit  = 0.60 × $10 = $6Monthly fixed cost = $50,000Now, The profit per unit = Selling cost - Variable cost orThe profit per unit = $10 - $6 = $4Therefore, The breakeven point = [tex]\frac{\textup{Fixed cost}}{\textup{Profit per unit}}[/tex] orthe breakeven point = [tex]\frac{\textup{50,000}}{\textup{4}}[/tex] orthe breakeven point = 12,500 units