Question

Johnny makes wooden benches to sell. His advertising costs are $150 per month and each bench costs him $100 to make. If he sells each bench for $175, how many benches must he sell to break even each month?

Answer 1

2 benches

Explanation:

Selling Price per bench = $175

Cost per bench = $100

profit per bench = $175 - $100 = $75

assuming that he sell x benches a month,

profit in 1 month = $75x

given that his advertising costs are $150 per month, in order to break even, his profit must be equal to his advertising profit.

i.e

$75x = $150

x = 150/75

x = 2