A store buys items for $8 each and sells them for $15. The store has overhead costs of $2000 per month. How many items must they sell to break even?
Answer
286 items
How to solve it
1
Profit per item: $15 - $8 = $7
2
Overhead: $2000
3
Items needed: $2000 ÷ $7 ≈ 285.71
4
Round up: 286 items
Hints
Calculate profit per item
Divide overhead by profit per item
Round up since you need whole items