Question

June has decided to take up quilting. She bought a sewing machine for $135. It’s costs her $11.75 in raw materials to make a quilt, and she can sell a quilt for $28.50. Which of the following graphs best illustrates June’s situation?

Answer 1

The answer is A on edge

Explanation:

Answer 2

I or The first graph.

Explanation:

The sewing machine costs $135.

Each quilt made costs $11.75.

Each quilt sells for $28.50.

So let's find how many quilts need to be sold to break even.

The formula we will use to find the break even point will be:

`Q = (F)/((P-v))`

Q = Break even quantity

P = Selling Price per unit

v = Variable cost per unit

Let's begin by substituting the values that we have into the formula.

`Q = (135)/((28.50-11.75))`

`Q = (135)/((16.75))`

`Q = 8.06`

We can see in the first graph that the line of the cost and revenue meet when there are 8 quilts sold.