Question

The Jefferson band is selling baked goods to raise money for their trip. Their goa; is to profit at least $500. Each baked good sells for 2 dollars but costs $0.50 to make. How many baked goods will they have to sell to reach the goal?

Answer 1

Break-even point in units= 334

Explanation:

Giving the following information:

Desired profit= $500

Selling price= $2

Unitary variable cost= $0.5

To calculate the number of units to be sold, we need to use the following formula:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (0 + 500) / (2 - 0.5)

Break-even point in units= 334