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?
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.
