Question

Pencils are sold in a local store for 55 cents each. The factory has $1300 in fixed costs

plus 15 cents of additional expense for each pencil made. Assuming all
pencils manufactured can be sold, find the break-even point.
Break-even point:

Answer 1

3250 pencils sold

Explanation:

Let x represent the number of pencils.

The profit from the pencils sold can be represented by 0.55x, and the cost from making the pencils can be represented by 1300 + 0.15x.

Set these two terms equal to each other, and solve for x:

0.55x = 1300 + 0.15x

0.4x = 1300

x = 3250

So, the break even point is at 3250 pencils sold.