Question 907226: You are starting a business selling boxes of hand-painted greeting cards. To get started, you spend $36 on paint and paintbrushes that you need. You buy boxes of plain cards for $3.50 per box, paint the cards, and then sell them for $5 per box.
How many boxes must you sell for your revenue to equal your expenses? What will your expenses equal when you break even?
Answer by JulietG(1812)   (Show Source):
You can put this solution on YOUR website! Your fixed costs are $36
Your variable costs are $3.50 per box
Your profit per box is $1.50
Your break-even point is when your profit equals your fixed costs.
1.5x = 36
Divide each side by 1.5
x = 24
If you sell 24 boxes for $5, your gross sales are $120
Your costs are 36 + (3.5*24), or 36 + 84, or $120
|
|
|
