After calculating repairs needed for break-even for an electrician, what is the total number of repairs needed if fixed costs are $1,500 and variable costs are $70 per repair?

To determine the total number of repairs needed to break even for the electrician, we can use the break-even analysis formula:

Break-even point (in units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).

In this scenario, we have fixed costs of $1,500 and variable costs of $70 per repair. However, there is an important factor missing: the selling price per repair, which is necessary to calculate the break-even point accurately.

Assuming the selling price per repair was not specified in the question, let's analyze the solution if we were to assume a likely selling price of $140 per repair, a reasonable estimate for many electrical repair services.

Using the above formula:

Selling Price = $140 Variable Cost = $70 Fixed Costs = $1,500

So, the contribution margin per repair would be calculated as follows:

Contribution Margin = Selling Price - Variable Cost Contribution Margin = $140 - $70 = $70

Now we can apply these values to the break-even formula:

Break-even point = Fixed Costs / Contribution Margin Break-even point = $1,500 / $70

Calculating this gives:

Break-even point = 21.43 repairs

Nonetheless, the result you provided