Question

Bill and Angie are selling gift baskets at a craft fair. Their costs are $75 for the table and $12 per basket. They sell each basket for $20. How many baskets must they sell to break even?

Answer 1

They must sell 10 baskets to break even because
75=(20-12)x
Since the cost of the table is $75 the cost of each basket is $12, they are making a net profit of $20-12 per basket if they are selling each basket for $20. In that case, they must sell at least 10 baskets to break even. If they sell 10 baskets, they will make $80 to break even with the $75 cost for the table. They cannot break even by selling 9 baskets because they will only make $72 in that case.

Answer 2

20 - 12 = 8

So they only make $8 per basket sold.

75 / 8 = 9.375

Round it up

So they have to sell 10 to break even.