Question

Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $4.75, variable costs are $2.00 per dozen, and total fixed costs are $1100.00. How many dozens of ears of corn must Corny and Sweet sell to breakeven? (Round your final answer to the nearest unit amount.)

Answer 1

Answer:

Selling price = $4.75

Variable costs= $2.00

Contribution margin ratio = contribution margin / sale

= ($4.75 - $2.00) / $4.75 = 57.8%

Break even sale in dollars = fixed costs / contribution margin ratio

= $1100 / 57.8% = $1903

Breakeven Sales = $1903

Explanation: