Asked by Jaquez Hoskins on Jun 28, 2024
Verified
Lin Zander sells health and beauty aids to retailers. If she sells $74,130, she exactly covers all of her territory's direct costs. Based on an 8-hour workday, a five-day week, and a 48-week year, how much does Zander need to sell hourly to reach her break-even point?
Break-Even Point
The financial point at which total costs and total revenues are equal, meaning there is no net loss or gain, and it is a critical measure for assessing the viability of a business or project.
Direct Costs
Expenses that are directly attributed to the production of goods or services, such as materials and labor.
Territory
An area or region designated for specific business activities or responsibilities, often defined for sales purposes.
- Apply mathematical skills to solve real-world sales territory management problems.
Verified Answer
CR
Celeste RamirezJul 01, 2024
Final Answer :
Working hours per week = 5*8*48 = 1920
Hourly break-even point = $74,130/1920 = $38.61.
Hourly break-even point = $74,130/1920 = $38.61.
Learning Objectives
- Apply mathematical skills to solve real-world sales territory management problems.