A bakery sells pretzels. The fixed costs come to $8,750.00 per month. It will cost 35 cents to make each pretzel, and the bakery will charge $1.50 per pretzel. The bakery must sell 7,609 pretzels in a month to break even. The bakery's owners think they may not be able to sell that many pretzels. If they raise the price to $1.75, what will be the break-even point? Hint: use the Break-even point formula.

A bakery sells pretzels. The fixed costs come to $8,750.00 per month. It will cost 35 cents to make each pretzel, and the bakery will charge $1.50 per pretzel. The bakery must sell 7,609 pretzels in a month to break even. The bakery's owners think they may not be able to sell that many pretzels. If they raise the price to $1.75, what will be the break-even point? Hint: use the Break-even point formula.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter3: Your Role As A Consumer

Section: Chapter Questions

Problem 5AA

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