<h3>11,000 toothpicks must be sold in order to break even.</h3>
Step-by-step explanation:
Here, let us assume the number of toothpicks sold to break even = m
So, for m toothpicks, Total cost = Total Earnings
Now, the cost of producing 1 toothpick = $0.03
So, cost of production of m toothpicks = m x ( cost of 1 toothpick)
= $(0.03 m)
Also, fixed month cost = $110
So, Total cost of production = $110 + $0.03 m .... (1)
Again, the selling cost of 1 toothpick = $0.04
So, selling cost of m toothpicks = m ( cost of 1 toothpick) = $(0.04 m) ..(2)
From (1) and (2)
110 + 0.03 m = (0.04 m)
⇒ 110 = 0.01 m
or, m =
⇒ m = 11,000
Hence, 11,000 toothpicks must be sold in order to break even.
