Solve the problem.
-Northwest Molded molds plastic handles which cost $0.50 per handle to mold. The fixed cost to run the molding machine is $7200 per week. If the company sells the handles for $3.50 each, how many handles must be
Molded and sold weekly to break even?
A) 1800 handles
B) 14,400 handles
C) 1600 handles
D) 2400 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. The revenue is the selling price per handle times the number of handles. Setting these equal: $7200 + $0.50x = $3.50x. Solving for x gives x = 2400 handles.

Solve the Problem. -Northwest Molded Molds Plastic Handles Which Cost $0.50 Per Handle