The muffin household creates and offers many different muffins. the value per dozen is $15, adjustable prices are $9 per dozen, and complete fixed prices are $4,200. what amount of dozen muffins must the muffin household offer to breakeven?
Your concern requires what amount of muffins the Muffin home must offer to be able to breakeven 700 Muffins and discover the solution to your concern, we initially want to gather information through the concern. Important info: offering price/ per muffin = $15Variable expenses (expense to create)/ per muffin = $9Total fixed expense = $4,200 with all the information above, we could discover response to issue. The Muffin home uses $9 to create a muffin, but offers it for $15. And so the Margin is $6 (revenue). We’d just make benefit from the Margin cost, therefore we have to get the Margin cost to $4,200.This means we’d want to divide 4200 by 6 to have our response. Given that they wish to breakeven aided by the fixed expense, they must offer just as much muffins for Margin to incorporate to $4,200 at the conclusion to breakeven. when you are done resolving, you really need to get 700. Which means The Muffin home must offer 700 muffins to be able to break-even. I really hope this can help!Best regards,MasterInvestor
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