The Muffin House produces and sells a variety of muffins. The selling price per dozen is $19, variable costs are $13 per dozen, and total fixed costs are $4200. What are breakeven sales in dollars?

Question

Quizplus · Accepted Answer

The breakeven point in dollars can be calculated using the formula: Breakeven Sales = Fixed Costs / (1 - (Variable Costs / Selling Price)). Plugging in the given values: $4200 / (1 - ($13 / $19)) = $13,300.

The Muffin House Produces and Sells a Variety of Muffins