The Sweet Factory produces and sells specialty fudge.The selling price per pound is $20,variable costs are $12 per pound,and total fixed costs are $6,000.How many pounds of fudge must The Sweet Factory sell to breakeven?

Question

Quizplus · Accepted Answer

To find the breakeven point in pounds, use the formula: Breakeven point (in units) = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Here, it is $6,000 / ($20 - $12) = 750 pounds.

The Sweet Factory Produces and Sells Specialty Fudge