Question

Select the correct answer from each drop-down menu.
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 $
.

Answer 1

Jessica’s fixed monthly cost is $290, and her variable cost is $1.50 per bracelet. To break even she will have to sell the bracelets for $2.95 each.