Question

Suppose you spend $500 on an oven to bake bread each loaf of bread cost you $.20 to bake you sell the loaves for $1.00 each how many loaves of bread much do you sell to break even?

Answer 1

To break even, you need to sell at least 625 loaves of bread.

Step-by-step explanation:

To break even, you need to cover the cost of the oven and the cost of baking each loaf of bread. The cost of the oven is $500, and each loaf of bread costs $0.20 to bake. Since you sell each loaf for $1.00, your profit per loaf is $1.00 - $0.20 = $0.80.

To cover the cost of the oven, you divide $500 by $0.80 to find out how many loaves you need to sell. $500 / $0.80 = 625 loaves of bread.

Therefore, you need to sell at least 625 loaves of bread to break even.