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What level of sales volume will enable julie to break even

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Reference no: EM132393668

Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand is $50.00. Her best guess is that she can sell 300 cups per week at $0.50 per cup. The variable cost of producing a cup of lemonade is $0.20.

a. Given her other assumptions, what level of sales volume will enable Julie to break even?

b. Given her other assumptions, discuss how a change in sales volume affects profit.

c. Given her other assumptions, discuss how a change in sales volume and variable cost jointly affect profit.

Reference no: EM132393668

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