MATH SOLVE

9 months ago

Q:
# Erin has developed a new lotion that will help children with sensitive skin. She invests $15,225 in equipment to manufacture and package her lotion. Each bottle costs $3.25 to manufacture and sells for $12. How many bottles of lotion must she make and sell before her business breaks even?

Accepted Solution

A:

"Break even" occurs when Revenue = Costs.

So, solve this equation:

($12/bottle)x = $15225 + ($3.25)x

Consolidating the x terms: $8.75x = $15225

$15225

Solving for x: x = ------------- = 1740 bottles

$8.75

Her business will break even when she has sold 1740 bottles of her lotion.

So, solve this equation:

($12/bottle)x = $15225 + ($3.25)x

Consolidating the x terms: $8.75x = $15225

$15225

Solving for x: x = ------------- = 1740 bottles

$8.75

Her business will break even when she has sold 1740 bottles of her lotion.