You own a Brownie shop. You have 2 employees that you pay a salary of $1,000 each, everymonth. The machine to make them costs $100/ month to lease. You can make 100 Brownieswith the machine using $20 of ingredients. Utilities (electric, heat etc.) and Rent for the shopis a total of $1,750 per month. There are no other costs. Brownies sell for $3 each. A: Howmany Brownies would you need to sell to break even in a month? B: Instead of just breakingeven, if you make 3000 Brownies in a month - what is your Gross Margin and your OperatingProfit for the month?

Breakeven Point : The break-even point is a fundamental concept in business and finance that…

Answered: is a total of $1,750 per month. There…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Leon's bought chairs for $180 less 30% and 20%. The store's overhead is 40% of the selling price and the net profit is 30% of the selling price. (a) What is the regular selling price of the chairs? (b) At what price can the chairs be put on sale so that the store breaks-even?
A company makes and sells ornamental vases. To make the vases there is a fixed monthly cost of $6,000 and an additional production cost of $9 per vase. The vases sell for $18 each. How many vases must the company sell to make a 20% profit?
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is a total of $1,750 per month. There are no other costs. Brownies sell for $3 each. A: How many Brownies would you need to sell to break even in a month? B: Instead of just breaking even, if you make 3000 Brownies in a month - what is your Gross Margin and your Operating Profit for the month?