Diana has a home-based business making and selling scented soaps. She initially spent $70 to purchase soap-making equipment, and the materials for each pound of soap cost $6. Diana sells the soap for $13 per pound. Eventually, she will sell enough soap to cover the cost of the equipment. How much money in total sales will Diana need to break even?

Diana has a home-based business making and selling scented soaps. She initially spent $70 to purchase soap-making equipment, and the materials for each pound of soap cost $6. Diana sells the soap for $13 per pound. Eventually, she will sell enough soap to cover the cost of the equipment. How much money in total sales will Diana need to break even?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 5PB: Blake Cohen Painting Service specializes in small paint jobs. His normal charge is $350/day plus...

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Please solve.

27
Part A
Diana has a home-based business making and selling scented soaps.
(a)
She initially spent $70 to purchase soap-making equipment, and the materials for each pound of soap cost $6.
Diana sells the soap for $13 per pound.
Eventually, she will sell enough soap to cover the cost of the equipment.
How much money in total sales will Diana need to break even?
A $100
B $110
$120
D $130
(b)
Part B
How many bars of soap will Diana sell?
bars of soap

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