Margaret sells hand-knit scarves at the flea market. Each scarf sells for $25. Margaret pays $30 to rent a vending space for one day. The variable costs are $15 per scarf. What total revenue amount does she need to earn to break even?

Question

Quizplus · Accepted Answer

To break even, Margaret needs to earn enough revenue to cover her fixed cost (vending space) and variable costs (materials, etc.). 
Let's set up the equation:

Revenue = Cost
25x = 30 + 15x
10x = 30 
x = 3

Margaret needs to sell 3 scarves to break even. 
Total revenue needed: 
3 x $25 = $75 
Therefore, choice B is the best choice.

Margaret Sells Hand-Knit Scarves at the Flea Market