Match Year-2 profit to Year-1

In Year 1, the only product sold was classic burgers, priced at $4 each with a unit cost of $1 and total volume of 231 million units.

Fixed costs in Year 1 can be ignored for this calculation.

In Year 2, the classic burger unit economics stay the same, but new fixed costs appear: a base fixed cost of $375 million per year, plus vegan program training at $60 million per year, and a supplier retainer of $2.25 million per month.

If Year 2 still involves selling only classic burgers, what total unit volume is required in Year 2 to equal the absolute profit earned in Year 1?

Write out the equation and the answer.

Overview:

The question tests unit economics, basic profit modeling, and algebraic manipulation used to connect price, variable cost, fixed costs, and unit volume.

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