Use the information below to answer the following question(s).
Healthy Greetings Corporation produces and sells fruit baskets for special events. The unit selling price is $60, unit variable costs are $45, and total fixed costs are $2,670.
-How many fruit baskets must Healthy Greetings Corporation sell to break even?

Question

Quizplus · Accepted Answer

To break even, the total revenue must equal the total cost. 
Let X be the number of fruit baskets sold to break even. Then: 
Total revenue = unit selling price * number of units sold = $60 * X 
Total variable costs = unit variable cost * number of units sold = $45 * X 
Total cost = Total fixed cost + Total variable cost = $2,670 + $45 * X 
Setting total revenue equal to total cost: 
$60X = $45X + $2,670 
$15X = $2,670 
X = 178 
Therefore, Healthy Greetings Corporation must sell 178 fruit baskets to break even.

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