Problem 1. You are selling crafts - candles you make at home and sell at art fairs. Your fixed costs are $5,000 per year. Each candle costs $2.00 to make (variable cost) and sells for $10.00. What is your breakeven in dollars and units?
Problem 2. You are selling candy bars at a stand at the local event. The fixed costs of building the stand, advertising, etc. amount to $900. You buy the candy bars for $.50 and sell them for $1.25 each. What is your breakeven in dollars and units (round to nearest whole number)?
Please show all the work for the problems.