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Decision Point: Calculating Breakeven Before recommending a price, you need to gain an understanding of your client's costs in producing the soap. She gives you
Decision Point: Calculating Breakeven Before recommending a price, you need to gain an understanding of your client's costs in producing the soap. She gives you the following information: Fixed costs (rent, insurance, utilities): $10,000 annually Variable costs (raw materials, production, shipping): $2.00 per unit She thinks that she might be able to sell the soaps for $4-$5 and wants to have an idea of how many soap she would need to sell in order to break even. At a selling price of $5, how many units would your client need to sell in order to break even? Select an option from the choices below and click Submit
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