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If the company sells shovels for 27.75 each The variable cost per shovel is 14.25 The company's monthly fixed costs are 2538 what would the company's break even point be?
Wiki User
∙ 16y ago
This is a pretty straight forward math problem. The company makes a profit of $13.50 ($27.75 minus $14.25) on each shovel it sells. Monthly fixed costs divided by the profit on each shovel ($2538.00/$13.50) show that they would have to sell exactly 188 shovels in order to break even. 188 shovels
Wiki User
∙ 16y ago
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