Question

A company is selling toothpicks. It costs $0.01 to produce each toothpick and a fixed cost of $120 a month for the company. If the company is selling toothpicks for $0.02 each, how many toothpicks must they sell a month in order to break-even?

Answer 1

Answer:

6000

Step-by-step explanation:

• Toothpicks to be sold= x
• Cost of production= 0.01x+$120
• Income = 0.02x

Break- even production:

• 0.02x=0.01x+$120
• 0.01x=$120
• x=$120/0.01
• x= 6000

Answer: 6000 toothpicks must be sold