NGMS STUCO plans to raise money by selling valentine's day candy. The club will purchase 20,000 candy pops which it plans to sell for $2 each. The cost for each candy will be $0.50. How many candy pops will the club have to sell to break even?
Question 6 options:
80000
500
5000
8000
To break even, the club needs to earn back the cost of purchasing the candy pops.
The cost for each candy pop is $0.50, and the club purchased 20,000 candy pops, so the total cost of the candy pops is 0.50 * 20,000 = $<<0.50*20000=10000>>10,000.
To break even, the club needs to earn back $10,000 in revenue.
Each candy pop is being sold for $2, so the number of candy pops needed to be sold to break even is 10,000 / 2 = <<10000/2=5000>>5,000.
Thus, the club needs to sell 5,000 candy pops to break even.
The correct answer is 5000.