Question

A jewelry maker produces necklaces that sell for $85 each. The jewelry maker cost include $35 in materials for each necklace plus fixed cost of $1650, how many necklaces must the jeweler fix to break even?

Answer 1

220

Explanation:

Let us assume that x number of necklaces are to be fixed to break even i.e. cost price = profit.

Now, cost for x necklaces is 35x + 1650, and selling price is 85x. {As per given condition}

Therefore, profit will be = 85x - (35x +1650) =50x -1650

Hence, to make break even, the condition is

50x - 1650 = 35x + 1650

⇒15 x =3300

⇒ x =220.

Hence, 220 number of necklaces must the jeweler fix to break even. (Answer)