A trader sells rolls of carpet from a market stall. The rolls of carpet cost £20 to buy and they sell for £45. The trader pays a labour cost of £2 for every roll of carpet sold. The only fixed cost is the rent of the stall, which is £115 per day. Assume that there are no other variable costs.

How many rolls of carpet must be sold in order to break even? (it is possible to sell fractions of a roll of carpet)

Answer rating: 100% (QA)

To break even the total revenue must cover both the variable costs cos... View the full answer