Given:
Fixed cost = $3,450
Variable cost = $12 per basketball
Selling price = $25 per basketball
Number of basketball sold = 300
To find:
Whether Rebotar did break even.
Solution:
According to the question,
Cost of 1 basketball = $12
Cost of 300 basketball = $12×300
We know that,
Total cost = Fixed cost + Variable cost



So, the total cost is $7050.
Now,
Selling price of a basketball = $25
Selling price of 300 basketball = $25×300
Total revenue is


So, total revenue is $7500.
At break even situation the profit is zero. In other words, the total revenue is equal to total cost.
Since,
, therefore, Rebotar did not break even.