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The selling price per box for Cynthia's Cookies is $20.43. Fixed costs are $60,000 and the variable cost per box is $10.01.


1. What is the break-even quantity?


2. If sales last year were 9,000 boxes, what was the net profit?

Respuesta :

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Based on the costs and selling price, the following are true:

  • 1. Breakeven quantity is 5,759 boxes.
  • 2. Net profit is $33,780

The Breakeven quantity

This can be found by the formula:

= Fixed costs / ( Selling price - Variable costs)

= 60,000 / (20.43 - 10.01)

= 5,759 boxes

The Net Profit from 9,000 boxes

= ((Selling price - Variable cost) x Volume ) - Fixed cost

= ( ( 20.43 - 10.01) x 9,000) - 60,000

= $33,780

Find out more on break-even at https://brainly.com/question/10190285.

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