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Mason Company manufactures and sells shoelaces for $2.00 per pair. Its variable cost per unit is $1.70. Mason's total fixed costs are $10,500. How many pairs must Mason Company sell to break even
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Mason Company manufactures and sells shoelaces for $2.00 per pair. Its variable cost per unit is $1.70. Mason's total fixed costs are $10,500. How many pairs must Mason Company sell to break even

User Sam Leach
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1 Answer

3 votes

Answer:

35,000

Step-by-step explanation:

The contribution margin of each pair sold is ...

$2.00 -1.70 = $0.30

In order to cover the fixed costs, ...

$10500/$0.30 = 35,000

pairs must be sold.

Mason Co. must sell 35,000 pairs of shoelaces to break even.

User Mckuok
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3.5k points
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