Question

Benny Books sells first edition books. Benny purchases the books from his supplier for $50 a book and sells them through his website for $175 a book. Benny's fixed costs are $89875. What is Benny's breakeven point in books? 399 O 719 O 514 0 1798

Answer 1

age Date Break - Even Point Break-even point is the pont when a compaaye venne is equal to its Lat. It is achieved when the market price of asset is the as its original cost. Some situation where an organisation is neither making money for losing money, but all the have been Cost tress Conferents in it! - There are fixed with Variable with fixed cast & These are the costs related to the use of fixed factors of production. There are incurred even when the authut is Variable costs These the expenditure incurred by proches on the use of voriable factors of production Colculation of Brook - Even hoint fixed lost contribution for unit Contribution her unit price Selling a per unit - Variable cost her unit

Date Here, it is given in the question - Borrly sells the book for $1750 boobs Here $175 is the selling price her unit. Benny purchases the fram his supplir $50 a book boob Here $ro is the variable est her unit (because these are expenditures spend by it) Benny's fixed cost are $89875 by putting all the values in the Besserule' = Break-even noint fixed cost Contibution has unit Contribution por unit = $175 $50 = o = $125 fixed cos- $89875 (hiven) Break even point - $89875 $195 719 units This means Benny needs to sell just on over 719 books, to reach the break even points. Dat are incorrect other options 399 Right crever is 17191