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Break even

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Please help with the following questions. Provide step by step calculations for each problem.

1) Jason processes and bottles jams. His fixed costs are 250 per month and the variable cost per jar is 1.20. He sells the jam to local grocery stores for 3.20 each. How man jars must he sell per year to break even and what will be his profit if he sells 3000 jars in a year?

2) Macbeth manufactures and replicates CDs for software and music recording companies. CD solutions sells each disc for 2.50. The VC per disc is 1.00. What must sales be in order to have a profit of 7500 per month?

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Solution Summary

The following problem helps with business problems. It helps with problems regarding break even points, sales and profits. Step by step calculations are given for each problem.

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1) Jason processes and bottles jams. His fixed costs are 250 per month and the variable cost per jar is 1.20. He sells the jam to local grocery stores for 3.20 each. How man jars must he sell per year to break even and what will be his profit ...

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