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Jingle Corporation produces toy footballs. Each football sells for $9.95 with a variable unit cost of $7.10. Assuming a fixed cost of $11,400 what is Jingle's breakeven point?
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Jingle Corporation produces toy footballs. Each football sells for $9.95 with a variable unit cost of $7.10. Assuming a fixed cost of $11,400 what is Jingle's breakeven point?

User Ruchama
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1 Answer

5 votes
They basically make a profit of $2.85. Because $9.95 - $7.10 = $2.85.

To break even you would have to sell 4000 footballs. Because 11,400 / 2.85 = 4000.
User Mariovials
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