Question

Karen makes custom jewelry. In order to sell her jewelry, Karen rents a small kiosk at the local mall for $50 per month. She must buy blank medallions, stones, and chains to make her custom necklaces. These supplies cost approximately $30. Karen sells her necklaces for $55 each. How many necklaces must she sell to cover her costs?

Answer 1

She will break even each month / cover her costs by selling 2 necklaces

Step-by-step explanation:

• If it's $50 a month, that is Karen's total monthly cost
• It costs $30 to make each necklace
• She sells the necklace for $55 each
• Total profit for each necklace therefore = sales price - cost, or $55 - $30, which is $25 profit per necklace
• To cover rent, which is $50, you take rent / profit per necklace or $50 / $25 profit per necklace, which is 2 necklaces