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The neighbourhood bookstore sells novels for $11 per unit. The cost to purchase one book is $7. The store has fixed costs per month of
The neighbourhood bookstore sells novels for $11 per unit. The cost to purchase one book is $7. The store has fixed costs per month of $1800. The store estimates that they can sell 600 books each month. (a) Compute the break-even point in units. (b) Compute the break-even point in sales dollars. (c) Compute the break-even point as a percent of capacity. John wants to earn money this summer by maintaining gardens and lawns. He estimates variable costs for each job of $3.66 for supplies. To be competitive, he can charge $22.00 per job, and would be able to maintain at least 100 jobs. If John wanted to make $700, what is the most he could pay for equipment? Use break-even analysis to determine your result. In order to make $700, the most that could be paid for equipment is $
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