Regrind, Inc. regrinds used typewriter platens. The cost per platen is $2.20. The fixed cost to run the grinding machine is $78 per day. If the company sells the reground platens for $4.20, how many Must be reground daily to break even?
A)12 platens
B)26 platens
C)39 platens
D)35 platens

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 platen times the number of platens, and the total revenue is the selling price per platen times the number of platens. Setting these equal gives: $78 + $2.20x = $4.20x$. Solving for x gives x = 39 platens.