Marcy owns Caps for Kids and sells her hand-knitted caps for $20. The variable cost per hat created is $10, and fixed costs are $10000. What is her breakeven point?

Question

Quizplus · Accepted Answer

The breakeven point is calculated by dividing the fixed costs by the difference between the selling price per unit and the variable cost per unit. Here, it's $10,000 / ($20 - $10) = 1,000 units.

Marcy Owns Caps for Kids and Sells Her Hand-Knitted Caps