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kirza4 [7]
3 years ago
13

Mickey built his lemonade stand out of $75,000 worth of plywood and paint. He uses $2.25 of lemons, sugar and water to make his

product. What does the selling price of the lemonade need to be to break even at 40 glasses
Business
1 answer:
soldier1979 [14.2K]3 years ago
7 0

Answer:

The selling price of the lemonade need to be to break even at 40 glasses is $1,877.50

Explanation:

Assumption: Considering $75,000 as fixed cost:

Break-even = Fixed cost  / contribution per unit

40 = $75,000 / Contribution per unit

Contribution per unit = $75,000 / 40

Contribution per unit = $1875

Selling Price = $1,875 + $2.25 = 1,877.50

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Answer:

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