Question

Ruth is knitting hats to sell at a local fair. The booth costs her $63 and the materials for each hat cost $10. She plans on selling them for $19. How many hats will Ruth have to make to break even, and how much will sales and costs be at that point? ​

Answer 1

Answer: Ruth have to make 7 hats to break even.

Explanation:

Break even point is a point where Cost = Revenue.

Let x be the number of hats sold.

Given: Cost of booth = $63

Each hat cost = $10

Selling price for each cost = $19

As per given,

Total cost = Cost of booth+ (Cost of each hat)(Number of hats)

= 63+10x

Total selling price = 19x

For break even,

63+10x=19x

9x=63

x=7

Hence, Ruth have to make 7 hats to break even.