If you own a business that prints menus for restaurants and you want to determine the number of menus you must sell in order to break even. The average price you charge for each menu is $1.00. Your fixed costs are $1,000 per year and your unit variable cost is 50 cents. Please respond to each of the below questions and show your work.
What quantity must you sell to break even.
At the break-even point, what is your profit?
What would your profit be if you sold 50 units more than the break-even quantity?