Question

A toy manufacturing company makes a doll that sells for 12 dollars. It cost 5 dollars in labor to make each doll. The total cost for the materials is 420 dollars. How many doll s must they sell to break even?

Answer 1

Number of units to be sold=60 units

Step-by-step explanation:

At Break even point:

Total costs= Total revenue

In the given question

Total costs=Labor cost per unit*number of units to be sold+total cost of material

=$5*number of units to be sold+$420

Total revenue=$12*number of units to be sold

$12*number of units to be sold=$5*number of units to be sold+$420

$12*number of units to be sold-$5*number of units to be sold=$420

$7*number of units to be sold=$420

Number of units to be sold=60 units