Question

Jessica wants to start making and selling bracelets using colorful beads and thread. She starts collecting information to come up with a business model. She finds out that she will have to pay $250 in rent per month. Her phone and Internet costs will be $40 per month. The material cost per bracelet will be $1.25, and a helper will charge $0.25 per bracelet. Jessica plans to make 200 bracelets in the first month.
Jessica’s fixed monthly cost is $_______, and her variable cost is $_______ per bracelet. To break even she will have to sell the bracelets for $________.

1.$250
$290

2.$1.50
$41.50

3.$2.95
$3.50

Answer 1

Answer:

1. $290

2. $1.50

3. $3.50