Question

Calculate the break-even amount for Elsie’s business if her fixed cost amount to R4200 and the gross profit percentage is 56%

Answer 1

[AI-generated answer — Bot GPT 3.5]

To calculate the break-even amount, we need to use the following formula:

Break-even amount = Fixed costs / Gross profit percentage

Break-even amount = R4200 / 0.56
Break-even amount = R7500

Therefore, Elsie's business needs to have sales of R7500 to break even.