Question

Anna wants to sell toy cars at a craft fair for $12 each. The materials for each car cost $3. 50, and the table rental at the fair costs $34 for the day. How many cars must anna sell for her revenue to equal her expenses?

Answer 1

Anna must sell 4 toy cars at the craft fair to have her revenue equal her expenses. This is calculated by dividing the fixed cost ($34) by her profit per car ($8.50), after subtracting the cost of materials from the selling price.

Step-by-step explanation:

To calculate how many toy cars Anna must sell to have her revenue equal her expenses, we must consider the fixed costs and the costs of materials for each car. The fixed cost is the table rental, which is $34, and the cost of materials for each car is $3.50. Each car sells for $12. To find the break-even point where revenue equals expenses, we use the formula:

Number of Cars x ($12 - $3.50) = $34

This simplifies to:

Number of Cars x $8.50 = $34

Dividing both sides by $8.50 gives:

Number of Cars = $34 / $8.50

Number of Cars = 4

Therefore, Anna must sell 4 cars to break even.