Question

a book store cost $80 a day to keep open, and it spends $15 for each book that it sells. if each book sells for $23, what is the break-even point for this booksotre?

Answer 1

Answer:p=10

Explanation:

Answer 2

The break even point for this book store is 10

Solution:

Given that, book store cost $80 a day to keep open, and it spends $15 for each book that it sells

Cost to open the book store = $ 80

The formula for solving the break even point (BEP) is:

`BEP = \frac{\text{Fixed cost}}{\text{Selling price - variable cost}}`

Fixed Cost is the cost that remains constant whether the services provided or products sold increases or decreases

Variable Cost is the cost that varies or differs in proportion to the products or services produced, whether they increased or decreased

In this problem,

Fixed cost = $ 80

Selling price = $ 23

Variable cost = $ 15

Therefore,

`BEP = (80)/(23-15)\\\\BEP = (80)/(8)\\\\BEP = 10`

Thus break even point for this book store is 10

In order for the bookstore to continue its business, it should sell at least 10 books to meet its $80 cost