 costs a baker ₱10 to make a cookie and sell it for ₱15 each. If the baker’s fixed cost is P500, what is the minimum number of cookies she needs to sell to break-even? A. 50 cookies B. 100 cookies C. 150 cookies D. 200 cookies

To determine the minimum number of cookies the baker needs to sell to break even, we need to use the **break-even point formula**:

\[
\text{Break-even point} = \frac{\text{Fixed costs}}{\text{Price per unit} - \text{Variable cost per unit}}
\]

Here:
- **Fixed cost** = ₱500
- **Variable cost per cookie** = ₱10 (cost to make one cookie)
- **Price per cookie** = ₱15 (selling price of one cookie)

Now, let's substitute these values into the formula:

\[
\text{Break-even point} = \frac{500}{15 - 10} = \frac{500}{5} = 100
\]

So, the baker needs to sell **100 cookies** to break even.

### Answer: B. 100 cookies

Would you like more details or have any questions? 

Here are some related questions to expand on this topic:
1. What would happen if the baker increased the selling price to ₱20 per cookie?
2. How would the break-even point change if the fixed cost increased to ₱600?
3. If the baker wants to make a profit of ₱1,000, how many cookies should be sold?
4. What is the total revenue and total cost at the break-even point?
5. How can reducing the variable cost per cookie affect the break-even point?

**Tip:** The break-even point helps businesses understand how many products they must sell before they start making a profit.

Costs a baker ₱10 to make a cookie and sell it for ₱15 each. If the baker’s fixed cost is P500, what is the minimum number of cookies she needs to sell to break-even? A. 50 cookies B. 100 cookies C. 150 cookies D. 200 cookies

Learn how to calculate the minimum number of cookies a baker needs to sell to break even using break-even analysis. With a fixed cost of ₱500 and a cost of ₱10 per cookie, the baker must sell 100 cookies to cover all expenses. This problem helps you understand key cost concepts, suitable for students in Grades 7-9.

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