Question

A toy maker needs to make $17,235 per month to meet his cost. Each toy sells for $45. How many toys does he need to sell in order to break even

Answer 1

Explanation:

i assume the figure he needs to "make" is the turnover and not the marginal profit - no indication of the cost of the toys he sells is given so it is impossible to work out the marginal profit of the each toy sold. (Though how the toymaker worked out the turnover required without knowing the cost of the toy is beyond me - though that didn't stop British Leyland pricing their best selling Mini in the 1970s.)

In this case divide the income required by the price of each toy, but as the income must be at least the required amount, any fractional part of a toy must be rounded *UP* to the next whole number.

17,235 ÷ 45 = 383 (so no rounding is needed).

He needs to sell 383 toys (made at zero marginal cost).