Accounting Fundamental - exercise (MA)

Task 1

David runs a store that sells apples. The cost of apple is $25 each; David intends to sell apples at $40 each. Each month, David needs to pay rental of $5,000 and his salary at $6,000.

Questions:
Q1. How many apples does David needs to sell in order to break even?
Q2. How many apples does David needs to sell in order to earn a monthly profit of $2,000?
Q3. If David wants to sell 50 apples and still intends to break even, how much should David charge per apple in order to break even?


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