Question

Jingle Corporation produces toy footballs. Each football sells for $9.95 with a variable unit cost of $7.10. Assuming a fixed cost of $11,400 what is Jingle's breakeven point?

Answer 1

They basically make a profit of $2.85. Because $9.95 - $7.10 = $2.85.

To break even you would have to sell 4000 footballs. Because 11,400 / 2.85 = 4000.