Question

A business purchases a line of items for resale that costs $1.32 each.  Expenses total $.65 per item.  What is the break-even price per item?

Answer 1

Jay, this is the solution:

Cost = $ 1.32 per unit

Expenses = $ 0.65 per unit

In consequence,

Break-even price = Cost + Expenses

Break-even price = 1.32 + 0.65

Break-even price = $ 1.97 per unit