Problema Solution
Austin's Mail Manufacturing is a company that produces chain mail. Their most popular product is saw-cut metal links that hobbyists can use to make their own creations. The company recently spent $719 on advertising, which they hope to make back quickly. The wire used to produce one ounce of links costs $3, but the finished links sell for $4 per ounce. Eventually, the company will make back its investment and break even. What will their expenses and sales both equal? How many links must be sold?
Answer provided by our tutors
Let 'x' represent the ounces of links.
Expenses = 719 + 3x
Sales = 4x
At the break even point we have:
Expenses = Sales
719 + 3x = 4x
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click here to see the equation solved for x
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x = 719 oz links
Expenses = Sales = 4*719 = $2,876.
719 ounces of links must be sold.