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.)

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Business

Perez

17 April, 18:09

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.)

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Adonis Solis · Answer 1

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