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Jenny's bakery sells carrot muffins at 2 dollars each. The electricity to run the over is over 120 dollars per day and the cost of making one carrot muffin is 1 dollar and 40 cents. How many muffins need to be sold each day to break even?

1 Answer

4 votes

Answer:

200 muffins

Explanation:

The selling price of each muffin = $2

The cost price of each muffin = $1.40

The price of electricity = $120

If the number of muffins that Jenny sells in a day is x, then, Jenny's total cost in a day is:

120 + (1.4 * x) = 120 + 1.4x

and the total sales earnings in a day for x muffins will be:

2 * x = 2x

To break even, the total costs in a day must equal to the total earnings. That is;


2x = 120 + 1.4x

Solving this:


2x - 1.4x = 120\\\\\\0.6x = 120\\\\\\x = 120/0.6\\\\\\x = 200

She must sell 200 muffins in a day to break even.

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