Question

Ana is going to a craft fair where she'll sell her handmade scarfs. She has six scarf designs, and she's made 15 of each. She's paid $128 for the booth, and each scarf costs $9.80 to make. How much should she charge for each scarf if she wants to break even after selling a third of her scarves?

Answer 1

$33.6667

Explanation:

Given the following :

Number of Scarf designs = 6

Number of each made = 15

Total scarfs = (15 * 6) = 90

Cost:

Booth = $128

Production cost per scarf = $9.80

Total production cost = $9.80 * 90 = $882

Total cost = $128 + $882 = $1010

Break even = profit - loss = 0

One third of scarves = 1/3 * 90 = 30

This means he must cover for the total cost of $1010 after selling 30 scarves

Hence price per scarf will be :

$1010 / 30

= $33.6667