Cheryl is considering adding a rack of greeting cards to her product offerings at The Bitty Bookstore. Her fixed costs associated with adding the greeting cards would be $400. Variable costs per card are $1 each. The greeting cards will sell for $3 each. Helen's break-even point would occur at ________ cards sold.
A) 150
B) 200
C) 300
D) 450

Question

Quizplus · Accepted Answer

The break-even point is calculated by dividing the total fixed costs by the difference between the selling price and the variable costs per card. In this case, Cheryl would need to sell 200 cards.

Cheryl Is Considering Adding a Rack of Greeting Cards to Her