A manufacturer has determined that the combined fixed and variable expenses for the production and sale of 500,000 items are \( \$ 10,000,000 \). What is the price at the breakeven point for this item?

To find the breakeven price, you need to divide the total expenses by the number of items. Here, the total expenses are \( \$ 10,000,000 \) and the quantity is \( 500,000 \) items. So, the breakeven price per item is calculated as follows: \[ \text{Breakeven Price} = \frac{\text{Total Expenses}}{\text{Number of Items}} = \frac{10,000,000}{500,000} = \$20 \] Thus, the price at the breakeven point for this item is \( \$20 \). Now, if they sell each item for \( \$20 \), they will cover all their fixed and variable costs, which means they won’t make a profit, but they won’t incur a loss either — that’s the beauty of breakeven!