ANOTHER KHAN ACADEMY
2 answers:
You might be interested in
The break even point for this book store is 10
<em><u>Solution:</u></em>
Given that, book store cost $80 a day to keep open, and it spends $15 for each book that it sells
Cost to open the book store = $ 80
<em><u>The formula for solving the break even point (BEP) is:</u></em>
Fixed Cost is the cost that remains constant whether the services provided or products sold increases or decreases
Variable Cost is the cost that varies or differs in proportion to the products or services produced, whether they increased or decreased
In this problem,
Fixed cost = $ 80
Selling price = $ 23
Variable cost = $ 15
Therefore,
Thus break even point for this book store is 10
In order for the bookstore to continue its business, it should sell at least 10 books to meet its $80 cost