How many retail stores should a shopping mall have to stay profitable?

Based on the data, how much revenue does the shopping mall generate per year?

A. $20,000

B. $15,000

C. $5,000

The correct answer is: A. $20,000

To determine the number of retail stores a shopping mall should have to stay profitable, we need to consider the fixed costs, selling price per unit, and variable costs. In this case, the shopping mall generates revenue of $20,000 per year.

The formula to calculate the break-even point is: Fixed costs / (Selling price per unit - Variable cost per unit).

By using this formula, we can find the number of stores needed for the shopping mall to not lose money. It is essential to understand the financial aspects of the business to make informed decisions regarding the number of retail stores.

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