The Muffin House produces and sells a variety of muffins. The selling price per dozen is $20, variable costs are $7 per dozen, and total fixed costs are $6,500. How many dozen muffins must The Muffin House sell to breakeven?

Dozens of muffin to break even is 500

Explanation:

GIVEN the following ;

Selling price per dozen = $20

Variable cost per dozen = $7

Total fixed cost = $6500

Break even point (unit) in dozen :

(Total fixed cost ÷ Contribution margin)

Contribution margin per dozen = (selling price - variable cost)

$20 - $7 = $13

Therefore,

Break even points (unit) in dozen:

$6,500 ÷ $13 = 500 dozens

Therefore 500 dozens of muffins would have to be sold in other to break even(achieve a net profit of zero).

answerpublic goods;

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