Asked by Lauren Pennetta on Apr 28, 2024
Verified
Samantha manufactures rings which sell in her boutique for $60 each. For 100 rings, the material cost is $15 each, and estimated fixed costs are $900. How many rings must Larissa sell to beak-even?
Fixed Costs
Business costs that do not vary with the amount of goods produced or the volume of sales.
Material Cost
The expense incurred to acquire raw materials needed to produce a product or complete a project.
Break-Even
The instance where cumulative spending equals cumulative earnings, causing neither a financial gain nor a deficit.
- Determine the break-even targets in the dimension of units and currency employing a range of techniques, and deliberate on the interpretations.
- Master the use of break-even analysis tools, including the graphical approach and algebraic calculations.
Verified Answer
MA
Learning Objectives
- Determine the break-even targets in the dimension of units and currency employing a range of techniques, and deliberate on the interpretations.
- Master the use of break-even analysis tools, including the graphical approach and algebraic calculations.