Question

Kurt, an artist, plans to paint and sell some miniature paintings.

Answer 1

a) The amount earned by Kurt by selling the break-even units of painting at $38 each is $1,064.

b) The number of paintings that Kurt will be selling at the break-even point is 28.

What is the break-even point?

The Break-even point is the sales units at which the seller's total revenue equals the total costs.

At the break-even point, there is no profit or loss.

Data and Calculations:

Fixed costs = $112

Variable cost = $34

Selling price = $38

Contribution margin = $4 ($38 - $34)

Contribution margin ratio = 10.53% ($4/$38 x 100)

Break-even point (units) = Fixed costs/Contribution margin per unit

= 28 units ($112/$4)

Break-even point (dollars) = $1,064 ($38 x 28)

Learn more about the break-even point at brainly.com/question/21137380

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