Question

A toy manufacturing company makes a doll that sells for 12. it cost $5 in labor to make each doll. the total cost for the materials is $420 how many dolls must they sell to break even

Answer 1

60 dolls

Step-by-step explanation:

Answer 2

Selling price for a doll is: $12. Therefore the total income is 12 x, where x is the number of dolls.
Total cost for the materials: $420 ( Fixed cost ).
Cost for the labor is $5 to make each doll or: 5 x ( Variable cost ).
If a toy manufacturing company wants to break even:
Income = FC + VC
12 x = 420 + 5 x
12 x - 5 x = 420
7 x = 420
x = 420 : 7
x = 60
Answer: They must sell 60 dolls to brake even.