Emannuel decided to put up a candy shop that sells a dairy chocolate that cost P135.00 per pack. The cost of making the chocolate is P90.00 and the operating expense is P4,500.00.How many packs of dairy chocolate must be sold to break even?
Answers
Given : emmanuel decided to put up a candy shop that sell a diary chocolate at 135 per pack
cost of making the chocolate is 90 and the operating expenses is 4,500
To Find : how many pack of diary chocolate must be sold to break even
Solution:
cost of making the chocolate is 90
Let say number of chocolates = n
Variable Cost = 90n
Fixed Cost = 4500
Cost = Fixed Cost + Variable cost
Cost = 4500 + 90n
Selling Price per piece = 135
Revenue = 135n
At break even Cost = Revenue
135n = 4500 + 90n
=> 45n = 4500
=> n = 100
100 packs of dairy chocolate must be sold to break even
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