Question

A company is selling toothpicks. It costs $0.03 to produce each toothpick and a fixed cost of $100 a month for the company. If the company is selling toothpicks for $0.05 each, how many toothpicks must they sell a month in order to break-even?

Answer 1

5000

Explanation:

100 + 0.03x = 0.05x

Collect like terms

100 = 0.05x - 0.03x

100 = 0.02x

Divide.

x = 100 / 0.02

x = 5000