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Two years ago, you started a business selling homemade candles and soap. Recently, you developed a new candle scent that you’re anxious to get on the market. You must decide whether to price the candle at $10 or $15. First, you must determine the break-even point for the $10 price. Using the information provided, perform the six-step process to calculate the break-even point.
Your Most Recent Income Statement:
Total Sales Revenues $14,500
Total Costs
Wages and salaries $4,000
Insurance $500
Rent $2,000
Telephone $600
Advertising $300
Cost of goods $1,000
Equipment and supplies $1,000
Utilities $700
Total Costs $10,100
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