Answer:
The price would have to be $5.8 for Katherine to break even by selling 500
Step-by-step explanation:
Fixed cost = $400
Variable cost = $3
Variable cost for 500 programs=
There is also a $1,000 fee that is paid to the university for the right to sell these programs.
So, Total cost = 400+1000+1500=$2900
Now we are given that Katherine is selling programs for $5 each.
Let p be the price of program
So, Revenue =generated from selling 500 programs = 500p
So,
Hence the price would have to be $5.8 for Katherine to break even by selling 500