Northwest Molded molds plastic handles which cost $0.30 per handle to mold.

Question

Northwest Molded molds plastic handles which cost $0.30 per handle to mold. The fixed cost to run the molding machine is $1435 per week. If the company sells the handles for $1.30 each, how many handles must be molded and sold weekly to break even?

A. 956 handles

B. 4783 handles

C. 896 handles

D. 1435 handles

Answer 1

Revenue - Cost = Gross profit

1.30x - .30x = 1435.00

Factor x:

X(1.30 - .30) = 1435

X(1) = 1435

X = 1435