Betty Gilmore plans to sell berry pies at a local farmer's market.The permit and space rental will cost her $2,000 for the June through August season.The pies will sell for $7.00.Ingredients and overhead average $4.00 per pie.She also has to pay five percent of her gross sales to the market's organizers.How many pies will she need to sell to cover her fixed costs?

Question

Quizplus · Accepted Answer

To cover her fixed costs, Betty needs to sell enough pies to make $2,000. She will make $3.00 profit on each pie ($7.00 - $4.00). So, she needs to sell 2,000 / 3 = 666.67 pies. Since she can't sell a fraction of a pie, she will need to sell 667 pies.

Betty Gilmore Plans to Sell Berry Pies at a Local