Question

Erin has developed a new lotion that will help children with sensitive skin. She invests $15,225 in equipment to manufacture and package her lotion. Each bottle costs $3.25 to manufacture and sells for $12. How many bottles of lotion must she make and sell before her business breaks even?

Answer 1

B. 1740 bottles

Explanation:

EDG.2021

Answer 2

"Break even" occurs when Revenue = Costs.

So, solve this equation:

($12/bottle)x = $15225 + ($3.25)x

Consolidating the x terms: $8.75x = $15225
$15225
Solving for x: x = ------------- = 1740 bottles
$8.75

Her business will break even when she has sold 1740 bottles of her lotion.