You invest $3700 in a fishing lure business.A lure costs $1.60 to produce and will be sold for $6.20.How many lures must you sell to break even?

Question

Quizplus · Accepted Answer

To break even, the cost of production must equal the revenue from sales. The profit per lure is $6.20 (selling price) - $1.60 (cost) = $4.60. To find out how many lures need to be sold to cover the initial investment of $3700, divide the investment by the profit per lure: $3700 / $4.60 = 804.35, which rounds up to 805 lures.

You Invest $3700 in a Fishing Lure Business