Answer: 10 wreaths
Step-by-step explanation:
First identify the terms.
She has a booth that cost $200. This price will not change thus making it a Fixed cost.
Making a wreath would cost her $10 each time so this is a Variable cost.
She sells the wreath for $30 so this is the selling price.
Breakeven = Fixed Cost / Contribution margin
Contribution margin = Selling price - Variable cost
= 30 - 10
= $20
Breakeven point = 200/20
= 10 wreaths
