Lacie decides to start a small business making monogrammed towels. She can set aside $4670 for monthly costs. Fixed costs are $1800 per month and variable costs are $4 per set of towels. How many sets of towels can she afford to make per month?

Question

Quizplus · Accepted Answer

To find the number of sets of towels she can afford to make, subtract the fixed costs from the total monthly budget and then divide by the variable cost per set: (4670 - 1800) / 4 = 717 sets.

Lacie Decides to Start a Small Business Making Monogrammed Towels