Question: Mr . A . started a new burger store which has a fixed cost of $ 2 0 0 0 in a year. He sells

Mr. A. started a new burger store which has a fixed cost of $2000 in a year. He sells burgers for $5. His cost to make each burger is $3.
Calculate his break-even point (BEP) from sales of burgers in that year.
(Hint:
Step 1: Contribution margin = Selling price - cost
Step 2: BEP = Fixed costs -: contribution margin)
Question 8Answer
a.
250 burgers
b.
2000 burgers
c.
500 burgers
d.
1000 burgers

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!