Problema Solution
You are starting a business selling boxes of hand-painted greeting cards. To get started, you spend $36 on paintbrushes that you need. You buy boxes of plain cards for $3.50 per box, paint the cards, and sell for $5 per box. How many boxes must you sell for your earnings to equal your expenses? What will your earnings and expenses equal when you break even?
Answer provided by our tutors
Every box you sell earns you
$1.50 toward paying your paint expenses (which were $36). How many
$1.50's would you need to reach $36.00 ? Divide 36 by 1.50, and you get 24 boxes to break even.
Your total expenses at break-even point were the $36
for paint, plus 24 boxes (times 3.50 each). 36+24(3.50) = 36+84 = $120 expenses.
To check it, 24 boxes times $5.00 each = $120 earnings.