Question

Henry sells rings for $8 each. His expenses are $2.00 per ring, plus $90 for supplies. How many rings does he need to sell for his revenue to equal his expenses? Show your work.

A. 15 rings
B. 20 rings
C. 25 rings
D. 30 rings

Answer 1

After setting up an equation representing the revenue being equal to the sum of the variable costs per ring and fixed supply costs, it's calculated that Henry needs to sell 15 rings to cover his total expenses. Therefore, the correct option is A.

Step-by-step explanation:

To determine the number of rings Henry needs to sell for his revenue to equal his expenses, we can set up the following equation:

Revenue from rings sold = Expenses for making rings + Fixed supplies cost

Let x represent the number of rings sold. Then the total revenue (price per ring times the number of rings sold) would be $8x. The variable expenses would be $2 per ring, amounting to $2x, and the fixed cost for supplies is $90.

Therefore, our equation will be:

$8x = $2x + $90

To find the value of x, we need to solve for x:

$8x - $2x = $90

$6x = $90

x = $90 / $6

x = 15

Henry needs to sell 15 rings for his revenue to cover his total expenses.