Question

Kurt, an artist, plans to paint and sell some miniature paintings.

​He just bought some brushes for \$ 112$112 , and paint and canvas for each painting costs \$ 34$34 ; he will sell each painting for \$ 38$38.

​

​Once Kurt sells a certain number of his paintings, he will be breaking even.

​How much will Kurt have earned? How many paintings will that be?

​

Kurt’s expenses and receipts will both total $
when he has sold
of his paintings.

Answers

  1. a) The amount earned by Kurt by selling the break-even units of painting at $38 each is $1,064.
    b) The number of paintings that Kurt will be selling at the break-even point is 28.

    What is the break-even point?

    The Break-even point is the sales units at which the seller’s total revenue equals the total costs.
    At the break-even point, there is no profit or loss.

    Data and Calculations:

    Fixed costs = $112
    Variable cost = $34
    Selling price = $38
    Contribution margin = $4 ($38 – $34)
    Contribution margin ratio = 10.53% ($4/$38 x 100)
    Break-even point (units) = Fixed costs/Contribution margin per unit
    = 28 units ($112/$4)
    Break-even point (dollars) = $1,064 ($38 x 28)
    Learn more about the break-even point at https://brainly.com/question/21137380
    #SPJ1

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