Answer:
$62
Explanation:
Breakeven point is the production level at which the revenue gained is equal to the cost incurred in producing a product.
It is an important consideration because businesses can plan on how to increase profits by producing more above this level.
The formula for break-even is given as
Breakeven= Fixed cost ÷(Price - Variable cost)
To get the price to breakeven, we will take breakeven point as 50 massages per day
50= 1,850 ÷ (Price - 25)
50* (Price - 25)= 1,850
(50* price) - (50* 25)= 1,850
Price = (1,850 + 1,250) ÷ 50
Price= $62
Answer:
Sales Price = $62
Explanation:
Break-Even formula:
⇒ Break-Even Units = Fixed Costs
Sales Price - Variable Costs
⇒ 50 = 1850
Sales Price - 25
⇒ Sales Price - 25 = 1850
50
⇒ Sales Price - 25 = 37
⇒ Sales Price = 37 + 25
⇒ Sales Price = $62
