Question

You make cards and sell them for $2.50 each. it costs $1.15 to print each card. you also pay $50 for supplies. how many cards must you sell to meet the cost for making the cards (you break even)? round up to the next whole card.

Answer 1

you would get 38 cards

Answer 2

If the cards are sold for $2.50 each and the variable cost of production is $1.15, then the gross contribution of each card is $2.50 - $1.15 = $1.35. Therefore, in order to break even, we need to sell enough cards to create a total contribution greater than the $50 fixed cost of starting the venture. Therefore dividing $50 by $1.35 and rounding up, we find a breakeven volume of 38 cards.