You would like to start a food truck that sells gourmet frozen juice pops. If your fixed costs are $500, variable costs are $2.50, and you plan to sell each juice pop for $4, what is your break-even point?

Question

Quizplus · Accepted Answer

The break-even point formula is:

Break-even point = Fixed costs / (Price - Variable costs)

Substituting the given values, we get:

Break-even point = $500 / ($4 - $2.50) = 334 juice pops

Therefore, option B is the correct answer.

You Would Like to Start a Food Truck That Sells