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2 years ago

A bookstore costs $120 a day to keep open, and it spends $14 for each book that it sells. 11

Mathematics

1 answer:

frozen [14]2 years ago

8 0

<u>Answer:</u>

The break-even point for this bookstore is 20 units

<u>Explanation:</u>

We know that break even point is given by the following formula,

$\frac{\text { Fixed costs }}{\text { (Price per unit - Variable costs) }}$

Here, we are given that bookstore costs $120 per day to keep open so fixed cost = 120$

Price per unit = price of each book =20$ and

variable cost = $14

Substituting these in the formula, we get

$\frac{120}{(20-14)}$

= $\frac{120}{6}$ = 20

20 units which is the The break-even point for this bookstore.

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