Calculating production cost

Question

The cost of production for a box of markers is $500 to set up the equipment plus $0.35 per box for materials. A box of markers sells for $2.85. How many boxes of markers must be sold for the company's income to equal the cost of production?

Answer 1

If we let x be the number of boxes produced we can set the cost of production for all boxes to total price paid for all boxes as follows:

500+.35x=2.85x

500=2.5x

x=200 boxes

 

Hope that helps!