Question

A bookstore costs $90 a day to keep open, and it spends $13 for each book-
that it sells. If each book sells for $16, what is the break-even point for this
bookstore?
Α. n = 16
Β. n= 30
C. n= 13
D. n= 3

Answer 1

The break-even point for this bookstore is 30.

What is the break-even point?

Breakeven quantity are the number of  units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

$90 / (16 - 13)

$90 / $3 = 30

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