Question

The cost of making hamburger is 10.75 and the selling price is 16. The fixed expenses for the month is 3000. How many hamburger should be sold per month

Answer 1

Break-even point in units= 571 hamburgers

Explanation:

Giving the following information:

The cost of making a hamburger is 10.75 and the selling price is 16. The fixed expenses for the month are 3000.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 3,000 / (16 - 10.75)

Break-even point in units= 571 hamburgers