Explain breakeven analysis for a cookie store

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Explain Breakeven Analysis for a cookie store

Let's say we had a cookie store open 20 days a month. How many cookies would we have to sell each day to break even if we sold our cookies at $1 apiece and had the following expenses?

Rent = $ 600 per month.
Bank loan for our equipment = $300 per month.
Insurance = $1,200 per year.

Cookie ingredients amount to 50-cents per cookie. You plan to live on the profits so won't be taking a salary.

Reference no: EM1338689

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