Question

Samir, a carpenter, spent $300 on specialty tools to make toy horses for children. For each horse he makes, he
spends $75 on supplies. He charges $125 for each horse. How many horses must Samir sell in order to break even?
O 2
O 3
O 4
O 6

Answer 1

Given:

Fixed cost = $300

Variable cost = $75 on each supply

Revenue = $125 on each horse.

To find:

The number of horses for break even.

Solution:

Let x be the number of horses.

The fixed cost is $300 and the variable cost is $75 on each supply. So, the cost function is:

$C(x)=300+75x$

The revenue from each horse is $125. So, the revenue function is:

$R(x)=125x$

On break even, the revenue and cost are equal.

$R(x)=C(x)$

$125x=300+75x$

$125x-75x=300$

$50x=300$

Divide both sides by 50.

$x=\dfrac{300}{50}$

$x=6$

The number of horses for break even is 6.

Therefore, the correct option is D.

Answer 2

Answer:

6

Step-by-step explanation: