How many treats does nick need to sell per week to break even?

Question

Nick plans to start a home-based business producing and selling gourmet dog treats. He figures it will cost $20 in operating costs per week plus $0.50 to produce each treat. He plans to sell each treat for $1.50. How many treats does nick need to sell per week to break even?

Answer 1

Hi Hannah, set up an equation that equates what you know. The equation would look like:

 

20.00 + .50x - 1.50x = 0, 

 

Where:

 

20.00 is the operating costs.

 

.50x is the cost to produce each treat.

 

1.50 is the selling price of each treat.

 

The total must equal 0 for Nick to break even.

 

Solve for x:

 

20.00 + .50x - 1.50x = 0

 

20.00 - 1.00x = 0

 

x = 20

 

Nick would have to sell 20 treats to break even for the week.

 

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