Solve the problem.
-Northwest Molded molds plastic handles which cost $0.20 per handle to mold. The fixed cost to run the molding machine is $5,253 per week. If the company sells the handles for $3.20 each, how many handles must
Be molded and sold weekly to break even?
A) 1,167 handles
B) 1,544 handles
C) 26,265 handles
D) 1,751 handles

Question

Quizplus · Accepted Answer

To break even, the total cost must equal the total revenue. The total cost is the fixed cost plus the variable cost per handle times the number of handles, and the total revenue is the selling price per handle times the number of handles. Setting these equal gives: $5,253 + $0.20x = $3.20x$. Solving for x gives x = 1,751 handles.

Solve the Problem. -Northwest Molded Molds Plastic Handles Which Cost $0.20 Per Handle