Solve the problem.
-A company that manufactures boxes recently purchased $880 worth of new equipment to offer gift boxes to its customers. The cost of producing a package of gift boxes is $0.30 and it is sold for $1.40. Find the number of
Packages that must be sold for the company to break even.
A) 820 packages
B) 353 packages
C) 810 packages
D) 800 packages

Question

Quizplus · Accepted Answer

To break even, the revenue must equal the total cost. The revenue per package is $1.40 and the cost per package is $0.30, so the profit per package is $1.40 - $0.30 = $1.10. The fixed cost is $880. To find the break-even point: $880 / $1.10 = 800 packages.

Solve the Problem. -A Company That Manufactures Boxes Recently Purchased $880 Worth of $880