Question

Casey has a small business making dessert baskets. She estimates that her fixed weekly costs for rent and electricity are $200. The ingredients for one dessert basket cost $2.50. If casey made 40 baskets this pst week, what were her total weekly costs? If each basket sells for $25, how many baskets will casey have to sell to break even?

Answer 1

a) Total weekly cost = $300

b) For Cassey to break even she has to sell 4 baskets

Explanation:

Cost of electricity and rent in a week = $200

Cost of ingredients to make one dessert basket = $2.50

Total cost of making 40 dessert basket= 40*25

= $100

a) Cassey total cost in a week is $200 + $100

= $300

b) if each basket is sold at $25,the total selling price of 40 baskets will be $(25*40)

= $1000.

For Cassey to break even with the cost of production she has to sell y basket.

y = cost of producing 25 baskets / cost of selling 1 basket

y = 100/25

y = 4 baskets