Flower Art has increased its selling price to $25. All other costs remain constant (variable costs $15 per pot and fixed costs $40,000). The number of pots that have to be sold to break even is:

Question

Quizplus · Accepted Answer

To break even, the total revenue must equal the total cost. Let x be the number of pots needed to break even. Then:

Total Revenue = Total Cost
25x = 15x + 40,000
10x = 40,000
x = 4,000

Therefore, Flower Art needs to sell 4,000 pots to break even.

Flower Art Has Increased Its Selling Price to $25