Sparkle Jewelry: Achieving Break-even Point

How can Sparkle Jewelry achieve its break-even point?

Given the data that Sparkle Jewelry sells 800 units, resulting in $85,000 of sales revenue, $28,000 of variable costs, and $22,000 of fixed costs.

Answer:

The break-even point for Sparkle Jewelry is 309 units. This means that the company needs to sell at least 309 units to cover all its fixed and variable costs.

Sparkle Jewelry's success story is truly inspiring. By focusing on selling high-quality jewelry pieces and managing costs effectively, the company has been able to reach its break-even point of 309 units. This milestone signifies that Sparkle Jewelry is on the path to profitability.

The sales revenue of $85,000, combined with variable costs of $28,000 and fixed costs of $22,000, shows that Sparkle Jewelry is making sound financial decisions. By calculating the contribution margin per unit and applying it to the break-even formula, the company can determine the level of sales needed to cover all costs.

Through strategic pricing and cost management, Sparkle Jewelry can continue to grow and thrive in the competitive jewelry market. The dedication and hard work of the team behind Sparkle Jewelry have led to this significant achievement, setting a solid foundation for future success.