# Jessica wants to start making and selling bracelets using colorful beads and thread. She starts collecting information to come up with a business model. She finds out that she will have to pay \$250 in rent per month. Her phone and Internet costs will be \$40 per month. The material cost per bracelet will be \$1.25, and a helper will charge \$0.25 per bracelet. Jessica plans to make 200 bracelets in the first month. Jessica’s fixed monthly cost is \$, and her variable cost is \$ per bracelet. To break even she will have to sell the bracelets for \$

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dari hapatriYfafiq

## Jawapan

2016-03-14T10:23:55+08:00
If I understand correctly, her variable cost ist 1.25+0.25=1.5 per bracelet. Since she will make 200 bracelets, this will be  200*1.5=300 dolars

Her fixed monthly cost is 250+40=290

so to break even, she needs to make 300+290 dollars, which is 590 dollars.

that means that each bracelet will cost 590/200 dollars, which is

so to break even she needs to sell the bracelets for 2.95.

if she sells it for more, she will make some profit actually.