You have just conceived the idea of running a pastry-making SME on UG campus, given the large student numbers. You recently learnt in your business finance class that before you embark on any venture, you must be armed with information such as breakeven point among others. Your initial trials to produce the pastries yielded a total variable cost of Ghe 550 for 220 pieces. The pastries, per sentiments from the market, can be sold at twice the variable cost per unit. The fixed cost cf setting up the catering unit is Ghe 3,750. 

What is your anticipated breakeven level for units of pastries that must be sold ?

Answer rating: 100% (QA)

To calculate the breakeven point we need to find out how many units ... View the full answer