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Maryann and Don want to open their own deli.To do so, Maryann must give up her job, at which she earns $20, 000 per year, and Don must give up his part-time job, at which he earns $10, 000 per year.They must liquidate their money market fund, which earns $1, 000 interest annually.The rent on the building is $10, 000 per year, and expenses for such necessities as utilities, corned beef, and pickles are $35, 000 annually.What minimum amount of revenue per year would make it worthwhile, financially, for Maryann and Don to operate the deli?
Unit Variable Cost
The expense incurred from manufacturing an extra unit of a product.
Break-even Chart
A graphical representation that displays the point at which total costs and total revenues are equal, indicating no net loss or gain.
Total Revenue
The total amount of money generated by a company from its sales of goods or services before any costs or expenses are deducted.
Total Cost
The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.
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