Eric sells $3 chocolate chip cookies on the weekend to make extra money. Annual fixed costs to make

cookies include following items:

$170 for natural gas costs (related to his ovens)

$237 to buy baking sheets and aluminum pans

$1,000 for automobile expenses (insurance, gas, etc.) to take his cookies to various homes

$158 for advertising costs (flyers, etc.)

$1,580 for ingredients (sugar, eggs, oil, etc.)

$30,000 for labor (baker)

Variable cost per cookie includes the following:

$1 per cookie (miscellaneous items)

What is the breakeven point (how many cookies does Jimmy need to sell in one year)?

Step 1) BP = ($170+ $237 + $1,000 +$158 + $1,580 + 30,000)

($3 - $1)

Step 2) BP = $33,145

$2

Step 3) BP = 16,573 cookies per year to breakeven (round up for answer)

How many cookies does Jimmy need to sell each month to breakeven?

16,573 cookies/ 12 months = 1,382 cookies per month (round up for answer)

How many cookies does Jimmy need to sell each week to breakeven?

16,573 cookies/ 52 weeks = 319 cookies per week (round up for answer)