Eunice has bought a worm farm.She plans to sell a small carton of worms to people who want to fish for $3.Her fixed costs are $1,201,and her variable cost for each carton sold is $.74.When Eunice's sales reach _____ cartons of worms,she will have reached her break-even point.

Question

Quizplus · Accepted Answer

Break-even quantity = Total fixed costs/actual unit sales price - unit variable cost = 1201/(3 - .75)= 1201/2.25 = 533.78 = 534 cartons

Eunice Has Bought a Worm Farm