contestada

Kurt, an artist, plans to paint and sell some miniature paintings.

​He just bought some brushes for \$ 112$112 , and paint and canvas for each painting costs \$ 34$34 ; he will sell each painting for \$ 38$38.

​

​Once Kurt sells a certain number of his paintings, he will be breaking even.

​How much will Kurt have earned? How many paintings will that be?

​

Kurt's expenses and receipts will both total $
when he has sold
of his paintings.

Respuesta :

anthougo

a) The amount earned by Kurt by selling the break-even units of painting at $38 each is $1,064.

b) The number of paintings that Kurt will be selling at the break-even point is 28.

What is the break-even point?

The Break-even point is the sales units at which the seller's total revenue equals the total costs.

At the break-even point, there is no profit or loss.

Data and Calculations:

Fixed costs = $112

Variable cost = $34

Selling price = $38

Contribution margin = $4 ($38 - $34)

Contribution margin ratio = 10.53% ($4/$38 x 100)

Break-even point (units) = Fixed costs/Contribution margin per unit

= 28 units ($112/$4)

Break-even point (dollars) = $1,064 ($38 x 28)

Learn more about the break-even point at https://brainly.com/question/21137380

#SPJ1

Otras preguntas