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Roman55 [17]
3 years ago
13

Becky, an artist, plans to paint and sell some miniature paintings. She just bought some brushes for $1, and paint and canvas fo

r each painting costs $21; she will sell each painting for $22. Once Becky sells a certain number of her paintings, she will be breaking even. How much will Becky have earned? How many paintings will that be?
Mathematics
1 answer:
Veronika [31]3 years ago
8 0

Answer:

After one unit is sold, Becky will break-even.

Step-by-step explanation:

Giving the following information:

Fixed costs= $1

Unitary variable cost= $21

Selling price= $22

<u>The break-even point is the number of units required to cover the fixed costs after deducting from the selling price the variable components. At this point, net income is zero</u>.

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 1 / (22 - 21)

Break-even point in units= 1

After one unit is sold, Becky will break-even.

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