Question

Emmanuel decided to put up a candy shop that sells a dairy chocolate that cost PhP135.00 per pack. The cost of making the chocolate is PhP90.00 and the operating expense is PhP4, 500.00. How many packs of dairy chocolate must be sold to break even? *

Answer 1

cost of making the chocolate is 90

Let say number of chocolates = n

Variable Cost = 90n

Fixed Cost = 4500

Cost = Fixed Cost + Variable cost

Cost = 4500 + 90n

Selling Price per piece = 135

Revenue = 135n

At break even Cost = Revenue

135n = 4500 + 90n

45n = 4500

n = 100

100 packs of dairy chocolate must be sold to break even