Question

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

Answer 1

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.