She must pay $200 to rent a booth at the craft fair. The materials for each pendant cost $7.80, and she plans to sell each pendant for $13.50. To make a profit, she must make more money than she spends.

Instructions are below.

Step-by-step explanation:

Giving the following information:

She must pay $200 to rent a booth at the craft fair. The materials for each pendant cost $7.80, and she plans to sell each pendant for $13.50.

We weren't provided with questions to answer. But, I will assume that we need to determine the number of units to be sold to break-even.

To calculate the break-even point in units and dollars, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 200 / (13.5 - 7.8)

Break-even point in units= 35 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 200 / (5.7/13.5)

Break-even point (dollars)= $473.68

If you want to reach a certain profit:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

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