Question

The manufacturer of pencils spends $0.05 to make each pencil and sells them for 0.25. The manufacturer also has fixed

costs each month of $2000. Find the number of pencils x that the manufacturer needs to sell in order to break even

Answer 1

x=10000

Explanation:

The break even point occurs when costs equal revenue. Write the break-even formula and solve to find

C(x)0.05x−20000.2xx=R(x)=0.25x=2000=10000.