Breakeven point-Algebraic Kate Rowland wishes to estimate the number of flower arrangements she must sell at $25 12 to break even She has estimated fixed operating costs of $12

Finance Dec 22, 2020

Breakeven point-Algebraic Kate Rowland wishes to estimate the number of flower arrangements she must sell at $25 12 to break even She has estimated fixed operating costs of $12.300 per year and variable operating costs of $15 37 per arrangement How many flower arrangements must Kate sell to break even on operating costs? units (Round to the nearest integer) The operating breakeven point is dhim Enter your answer in the answer box and then click CheckAnswer All are choinn

Expert Solution

Sale price = $25.12 p/u

Variable Cost = $15.37 p/u

Fixed Cost = $12,300 annual

Break-Even Units = FC / (S _p/u - VC _p/u)

= 12,300 / (25.12 – 15.37)

= 12,300 / 9.75

= 1,261.54 or 1262 Units

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