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Marys Meatballs By Mail, Inc. distributes authentic Italian meatballs by mail order. Marys only fixed costs are a telephone line and the printing and mailing
Marys Meatballs By Mail, Inc. distributes authentic Italian meatballs by mail order. Marys only fixed costs are a telephone line and the printing and mailing of a catalog. These costs total $200 per month. Marys average order is $5.00; the variable cost per order is $2.50, which includes postage. a. What is Marys breakeven point in terms of the number of orders needed per month? b. What is Marys breakeven point in terms of total sales dollars per month?
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