Go back and do your learning and try to get answers right then see the results, if you fail it then go back and do your leaning and then retry, and if you pass congrats man
The correct answer would be 12 Baskets.
If they spend $75 to advertise their sale, 12 baskets must be sold to break even.
Explanation:
Break even is a point where there is no loss and no profit for the product produced and sold.
Now material needed to make each basket = $3.75
Selling Price of Baskets = $10
Profit on each basket = Selling Price - Cost to make basket = $10 - $3.75 = $6.25
So the advertising expense is $75. Then to find that how many baskets must be sold to break even, we would divide the advertisement cost with the profit on each basket as follows:
$75 / $6.25 = 12
So 12 baskets are needed to be sold in order to break even.
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