Use the information below to answer the following question(s).
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 break even?

Question

Quizplus · Accepted Answer

To calculate the break-even point in units, use the formula: Break-even point in units = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Plugging in the given numbers: $6,000 / ($20 - $12) = $6,000 / $8 = 750 pounds.

Use the Information Below to Answer the Following Question(s)