Question

Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $ 4.25​, variable costs are $ 1.50 per​ dozen, and total fixed costs are $ 1 comma 375. How many dozens of ears of corn must Corny and Sweet sell to​ breakeven? (Round your final answer to the nearest unit​ amount.)

Answer 1

Answer: 500 dozens

Step-by-step explanation:

Given the following ;

Selling price per dozen = $4.25

Variable cost per dozen = $1.50

Fixed cost = $1,375

Break even point = (Fixed cost ÷ Contribution margin)

Contribution margin = selling price - variable cost

Contribution margin = $4.25 - $1.50 = $2.75

Break even point = $1375 ÷ $2.75

= 500 dozens.

500 dozens is the number of units (in dozen) that must be sold to attain a net profit of zero.

Answer 2

Break-even point= 500 units

Step-by-step explanation:

Giving the following information:

The selling price per dozen is $ 4.25

The variable costs are $ 1.50 per​ dozen

The total fixed costs are $1,375.

To calculate the break-even point in units, we need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= 1,375/ (4.25 - 1.5)= 500 units