The next two questions are based on the following information. Jane wants to set

Question

The next two questions are based on the following information.

Jane wants to setup a photo shop. The cost to rent an office is $150 per week. The variable cost of making one photo is $20 and she can sell it for $50.

Question 1 of 2

Question 2 of 2

Question 1 of 2

5.0 Points Jane has to sell  photos per week to break even. (Please only enter an integer and include no units.)
Mark for Review What's This?

Question 2 of 2

5.0 Points If Jane sells 10 units, her profits would be  dollars. (Please only enter an integer and include no units.)
Mark for Review What's This?

Explanation / Answer

Question 1 of 2 ;- Jane has to sell  photos per week to break even.

Contribution per photo = Selling price - Variable cost = $50 - $20 = $30

To break-even Total contribution = Fixed Cost

So, In the question, Fixed Cost = Rent of the office = $150 per week.

therefore, Jane has to sell  photos per week to break even = $150 / $30 = 5

Question 2 of 2 :- If Jane sells 10 units, her profits would be  dollars:

Profits = Total Contribution - Fixed Cost = $30 * 10 - $150 = $150

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