Betty's Breads is trying to calculate its breakeven point.Monthly fixed costs are $5,255.The cost of making one loaf of bread,considering labor and materials,is $3.50.Betty's sells the bread at $6 per loaf.How many loaves does Betty's need to sell each month in order to break even?
A) 251
B) 626
C) 1502
D) 2102
E) 2200

Question

Quizplus · Accepted Answer

D)Breakeven point (in units)= fixed costs/(price - variable cost per unit). In this scenario, breakeven point = $5255/($6 - $3.50)= 2102 loaves of bread.

Betty's Breads Is Trying to Calculate Its Breakeven Point