If the cards are sold for $2.50 each and the variable cost of production is $1.15, then the gross contribution of each card is $2.50 - $1.15 = $1.35. Therefore, in order to break even, we need to sell enough cards to create a total contribution greater than the $50 fixed cost of starting the venture. Therefore dividing $50 by $1.35 and rounding up, we find a breakeven volume of 38 cards.
