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How many cups must be sold in order to break even

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Reference no: EM132617262

A market stall sells freshly made orange juice in plastic cups. Variable cost per unit are $1. Monthly fixed costs are $1,000 for the stall and $200 rent for a juice extractor. The price per cup of juice is $2.50.

Question 1: How many cups must be sold in order to break even?

Question 2: Depict total costs line and total revenues line. (graphing method)

Question 3: Unfortunately, it seems that it won't be possible to sell more than 600 cups per month. Which price would be required to break even under this condition?

Question 4: The price is set as determined under 3. What would be the operative profit if 650 cups would be sold?

Reference no: EM132617262

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