Question

A computer company sells laptops for $400. It cost $150 to make each laptop and they spent $2000 in initial startup costs. How many laptops must they sell to break even?

Answer 1

The correct answer is 8.

Explanation:

Fixed price for a computer company is $2000.

Cost price of each laptop made is $150.

Let the company sold x number of laptops to break even, i.e. no loss no profit scenario.

Total cost price for making total x laptops is $ (2000 + 150x).

Selling price of each laptop is $400.

Selling price of x laptops is $400x.

Therefore 2000 + 150x = 400x

⇒ 250x = 2000

⇒ x = 8.

Therefore, 8 laptops must be sold to break even by the computer company.