Question

Printing a newsletter costs $1.50 per copy plus $450 in printer's fees. The copies are sold for $3 each.How many copies of the newsletter must be sold to break even?

Answer 1

300 Copies

Explanation:

Break even Units = Fixed Costs / (Price - Variable Cost)

Fixed Costs = $450

Variable Cost = 1.5

Price = 3

Break Even Units = 450 / (3 - 1.5)

Break Even Units = 450 / 1.5

Break Even Units = 300

300 Copies must be sold to break even.

I hope this helps!

-The BusinessMan