Question

Jeanette is starting a business selling handmade necklaces. She has decided to invest an initial amount of $400 for advertising, and materials cost $4 for each necklace she makes. Jeanette can sell her creations for $20 per necklace. Once she makes and sells a certain number of necklaces, she will break even, with identical expenses and sales. How many necklaces would that take?

Answer 1

25 necklaces

Explanation:

each necklace brings $16 profit (20-4=16)

400÷ 16= 25

so, at 25 necklaces, there will be enough profit to break even after paying for the advertising.