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almond37 [142]
3 years ago
9

Marcy owns the company Caps for Kids and sells her hand-knitted caps for $20 each. The variable cost per cap created is $10, and

fixed costs are $10,000. What is Marcy’s breakeven point?
Business
1 answer:
iragen [17]3 years ago
3 0
At breakeven point, the cost is equal to the revenue. This also means that the net profit is equal to zero. If we let x be the number of units sold or produced, the total costs and revenue are calculated as follows:

Total Cost = 10x + 10,000
Total Revenue = 20x

Equation both,
                10x + 10,000 = 20x
The value of x from the equation is 1000.

Answer: 1000
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