Elizabeth is the manager of a new spa opening in Gainesville and wants to know how much to charge for a massage. She knows that her fixed costs are $1850 and her variable costs per massage are $25. Furthermore, she assumes that her staff can give 50 massages per day. To break even, she would have to charge what price?

$62

Explanation:

Breakeven point is the production level at which the revenue gained is equal to the cost incurred in producing a product.

It is an important consideration because businesses can plan on how to increase profits by producing more above this level.

The formula for break-even is given as

Breakeven= Fixed cost ÷(Price - Variable cost)

To get the price to breakeven, we will take breakeven point as 50 massages per day

50= 1,850 ÷ (Price - 25)

50* (Price - 25)= 1,850

(50* price) - (50* 25)= 1,850

Price = (1,850 + 1,250) ÷ 50

Price= $62

Sales Price = $62

Explanation:

Break-Even formula:

⇒ Break-Even Units =             Fixed Costs                

                                     Sales Price - Variable Costs

⇒  50  =             1850      

                Sales Price - 25

⇒ Sales Price - 25 = 1850

                                    50

⇒ Sales Price - 25 = 37

⇒ Sales Price = 37 + 25

⇒ Sales Price = $62

y=mx+b is the right slope of velocity carry the 4 over

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.