Solve the problem.
-You invested $18,000 and started a business selling vases. Supplies cost $16 per vase and you are selling each vase for $34. Determine the number of vases, x, that must be produced and sold to break even.
A)1002 units
B)1001 units
C)1000 units
D)347 units

Question

Quizplus · Accepted Answer

To break even, the total revenue from selling the vases must equal the total cost of producing them. The cost to produce x vases is $16x (since each vase costs $16 to make), and the revenue from selling x vases is $34x (since each vase is sold for $34). The initial investment is $18,000, so the break-even point occurs when the revenue equals the cost plus the initial investment: $34x = $16x + $18,000. Solving for x gives x = $18,000 / ($34 - $16) = $18,000 / $18 = 1000. Therefore, 1000 vases must be produced and sold to break even.

Solve the Problem. -You Invested $18,000 and Started a Business Selling Vases. Supplies