Jenny's Bakery sells carrot muffins for $2.00 each. The electricity to run the oven is $120.00 per day and the cost of making one carrot muffin is $1.40. How many muffins need to be sold each day for the bakery to break even?

Question

Mathematics

Jaxon Ibarra

14 July, 10:33

Jenny's Bakery sells carrot muffins for $2.00 each. The electricity to run the oven is $120.00 per day and the cost of making one carrot muffin is $1.40. How many muffins need to be sold each day for the bakery to break even?

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Answers (1)

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Rey Oneill · Answer 1

Break even is a condition where the total production cost is same as the profit produced. In this question, the carrot muffin cost is $1.4 and sold at $2. Then the profit for every muffin should be: $2 - $1.4 = $0.6/muffin

The electricity cost is $120/day. Then to cover this cost, the muffin need to sold would be:

cost = muffin profit * muffin sold

$120 = $0.6/muffin * muffin sold

muffin sold = $120 / ($0.6 / muffin) = 200 muffin