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2 August, 13:46

Mopsun, a garment store, sells customized hoodies at $7 per unit. the total fixed costs add up to $8000 per year, and the variable costs add up to $3 per unit. how many hoodies should mopsun sell every year in order to cover all costs?

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  1. 2 August, 13:53
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    Because the profit of one hoodie is $4 (7 - 3), we have to divide the total fixed cost by the profit of one hoodie:

    8000/4 = 2000

    Mopsun should sell 200 hoodies to cover all costs.
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