Question

Suppose that you own a video store that has total costs of $3,600 per month. If you charge $12 for each DVD you sell, how many do you need to sell each month in order to break even? Explain how you arrived at your answer.

Answer 1

To break even, the video store must sell 300 DVDs each month, calculated by dividing the total monthly costs of $3,600 by the price per DVD of $12.

Step-by-step explanation:

To determine the number of DVDs you need to sell each month to break even, you need to divide your total monthly costs by the price per DVD. In this case, your monthly costs are $3,600 and the price per DVD is $12.

Using the formula:

Number of DVDs to break even = Total monthly costs ÷ Price per DVD

We can calculate this as follows:

Number of DVDs to break even = $3,600 ÷ $12

Number of DVDs to break even = 300

Therefore, you need to sell 300 DVDs each month to cover your costs of $3,600 and break even.

Answer 2

300
Divide 3600 by 100= 36
divide 36 by 12= 3
multiply 3 by 100=300