Question

Sunland's sells two products, a pepper relish with a selling price of $5.76 and a variable cost per jar of $2.44 and a blackberry marmalade with a selling price of $5.76 and a variable cost per lar of $2.34. Sunland's expected sales are 1160 jars of pepper relish and 1740 jars of blackberry marmalade. Fixed expenses are $9876. How much revenue will Sunland's need to generate from the sale of blackberry marmalade in order to break even?

a. $10098
b.$8721
c.$5821
d.$10022

Answer 1

Sunland's needs to generate $9876 in revenue from the sale of blackberry marmalade in order to break even.

Step-by-step explanation:

To calculate the revenue needed to break even, we need to consider the fixed expenses and the variable costs of the products. From the given information, Sunland's sells 1160 jars of pepper relish and 1740 jars of blackberry marmalade. Since the selling price of blackberry marmalade is the same as the pepper relish, we can assume that the revenue from the blackberry marmalade will cover the fixed expenses. Therefore, the revenue needed to break even from the sale of blackberry marmalade would be $9876, which is the amount of the fixed expenses.