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Suppose you invest 10 410 in equipment to manufacture a new bored game each game costs 2.65 to manufacture and sells for 20 how many games must you make and sell before your business breaks even-?
Wiki User
∙ 9y ago
You need to make and sell 600 Board Games before your business breaks even.
Wiki User
∙ 9y ago
To calculate the break-even point, we need to find the number of games that need to be sold in order to cover the initial investment. The formula to calculate the break-even point is:
Break-even point (in units) = Initial investment / Contribution margin per unit
The contribution margin per unit is the selling price of the game minus the manufacturing cost per unit.
Contribution margin per unit = Selling price - Manufacturing cost per unit = $20 - $2.65 = $17.35
Now, we can plug in the values:
Break-even point = $10,410 / $17.35 ≈ 600 games
Therefore, you would need to manufacture and sell 600 games before your business breaks even.
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Suppose you invest 10 410 in equipment to manufacture a new bored game each game costs 2.65 to manufacture and sells for 20 how many games must you make and sell before your business breaks even?
You will need to sell 600 board games before your business breaks even.
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