Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $ 4.25, variable costs are $ 1.50 per dozen, and total fixed costs are $ 1 comma 375. How many dozens of ears of corn must Corny and Sweet sell to breakeven? (Round your final answer to the nearest unit amount.)

500 dozens

Explanation:

Given the following ;

Selling price per dozen = $4.25

Variable cost per dozen = $1.50

Fixed cost = $1,375

Break even point = (Fixed cost ÷ Contribution margin)

Contribution margin = selling price - variable cost

Contribution margin = $4.25 - $1.50 = $2.75

Break even point = $1375 ÷ $2.75

= 500 dozens.

500 dozens is the number of units (in dozen) that must be sold to attain a net profit of zero.

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