Alexa must sell 17 coffee and muffins to break even
Advertising expense = $37.00
Coffee, cups, sweetener, flour etc expense = $7.69
Rent = $145.00
Total cost = 37 + 145 + 7.69
= 189.69
Price of coffee and a muffin = $11.69
Let x be the number of coffee and muffin being sold by Alexa:
The break-even threshold is reached when overall costs and total revenues are equal, leaving your small firm with no net benefit or loss. In other words, you've achieved the point in production where the revenue from a product equals the cost of manufacture.
Break-even point:
11.69x = 189.68
x = 16.22 or 17
So, she must sell 17 coffee and muffins
Learn more about break-even:
https://brainly.com/question/13770712
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