Answer to Question #229455 in Management for Pabi

Question

Whilst drawing up the budget for the coming year, Kabelo decides to determine the break-even 

point for new cryotherapy equipment. The fixed cost per year to maintain the cryotherapy 

equipment amounts to R165 000. Kabelo estimates that the variable cost per session will be 

around R30. If Kabelo and Hendrik decide to charge gym members R280 per session, how 

many sessions will they need to sell if they want to break-even? 

1 589

2 532

3 660

4 The break-even point cannot be calculated given the information above.

Answer 1

532