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Mr. Gregory White
Mr. Gregory White, Master's Degree
Category: Math Homework
Satisfied Customers: 5240
Experience:  M.A., M.S. Education / Educational Administration
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I am having a brain freeze here - should be able to figure

Customer Question

I am having a brain freeze here - should be able to figure out how to solve this, but can't:
My purchase price for an item is $130. My sales price is $215. Regardless of how many I buy, what % of my inventory do I need to sell to break even after purchase?
Thank you.
Submitted: 1 year ago.
Category: Math Homework
Expert:  Mr. Gregory White replied 1 year ago.

Hello, my name is Greg.

There is not quite enough information here as we need to know what our fixed costs are and not just the purchase and sell price.

Break-even point = fixed costs / (average price per unit - average cost per unit)

So, if you know the fixed costs, you will divide that by $85 (selling-purchase).

I hope that helps.