Answer:
The break-even point for this bookstore is 20 units
Explanation:
We know that break even point is given by the following formula,
[tex]$\frac{\text { Fixed costs }}{\text { (Price per unit - Variable costs) }}$[/tex]
Here, we are given that bookstore costs $120 per day to keep open so fixed cost = 120$
Price per unit = price of each book =20$ and
variable cost = $14
Substituting these in the formula, we get
[tex]$\frac{120}{(20-14)}$[/tex]
=[tex]$\frac{120}{6}$[/tex] = 20
20 units which is the The break-even point for this bookstore.
