The manufacturer of widgets spends $5 to make each widget and sells them for $8. The manufacturer also has fixed costs each mont
h of $1200. Find the number of widgets, x, that the manufacturer needs to sell in order to break-even.
2 answers:
Answer:
Step-by-step explanation:
He sells them 8 dollars and uses 5 dollars worth of material.
His profit is 8 - 5 = 3 dollars.
He has to sell enough to overcome the 1200 dollars.
1200 / 3 = 400
He breaks even after selling 400 widgets.
Answer:
400
Step-by-step explanation:
The manufacturer spends $5 to make each widget and sells them for $8. This means that each widget gives him a profit of $3.
8 - 5 = 3
You need to figure out how many widgets it will take for the manufacturer to make up for the costs each month ($1200).
3x = 1200
(3x)/3 = 1200/3
x = 400
The manufacturer needs to sell 400 widgets.
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