Use the formulas to calculate breakeven point for the following two (2) questions: Breakeven (units): Fixed Costs/(Price - Variable Costs) Breakeven (S): Fixes Costs/(1 - V ariable Costs/price))
1. Soy Candles, LLC sells candles made from soy-based wax. The company's total fixed cost is $44, 760. The company has variable costs of per candle and sells them at $5.00 each. From $1.45 this information calculate the number of candles Soy Candles, LLC must sell to breakeven. (Please write directly on the test. Show your work and underline your answer. Round to the nearest unit.)
2. Fred's college band, Fruity and the Slow Dish, signed a contract to rent time at a recording studio at S500 per session. Their contribution margin is $4.00 per CD. If the band sells the CD at $6,00 use the breakeven revenue formula to calculate how much the band must generate in order to break even. (Please write directly on the test. Show your work and underline your answer. Round the nearest dollar)