Question

Pens are sold in a local store for 80 cents each. The factory has $1200 in fixed costs plus 5 cents

of additional expense for each pen made. Assuming all pens manufactured can be sold, find the
break-even point.

Answer 1

Answer is 1600 pens sold to break even

Step by step

Profit = cost per x + fixed cost

.80p = .05p + 1200

Subtract .05p from both sides to combine variable

.80p - .05p = .05p - .05p + 1200
Simplify

.75p = 1200
Divide both sides by .75 to solve for p

.75/.75 p = 1200 /.75

p = 1600 pens sold to break even