Question

A fashion designer makes and sells hats. The material for each hat cost $5.50. The Hats sell for $12.50 each. The designer spends $1,400 on Advertising. How many hats must the designer sell to break even?

Answer 1

The designer must sell 200 hats for breaking even.

Step-by-step explanation:

Given,

Cost for material for each hat = $5.50

Selling price of each hat = $12.50

Cost spend on advertising = $1400

Let,

x represents the number of hats.

Revenue = 12.50x

Costs = 5.50x+1400

For breaking even,

Revenue = Cost

$12.50x=5.50x+1400\\12.50x-5.50x=1400\\7x=1400$

Dividing both sides by 7

$\frac{7x}{7}=\frac{1400}{7}\\x=200$

The designer must sell 200 hats for breaking even.

Keywords: addition, division

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