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Break even point - Hamburger Joe's sells the best burgers

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Hamburger Joe's sells the best burgers in town. The variable unit cost for making one burger is $.97. The fixed cost of making burgers for 12 months will be a total of: $140,000. Remember, fixed costs cover things like your rent, your phone bill, and insurance coverage - these items tend not to vary in amount per month over the term of one year.
If you charge $1.99 for your burger, how many burgers will you have to sell before you make back your total cost?

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Solution Summary

This problem explains how to calculate the break even point using given data in the problem.

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