Question

HELP. A student knits scarfs and sells them at craft shows. The yarn to make each scarf costs $4. The scarves sell for $15 each. If the booths at the craft show cost $160 and they must buy a pair of new knitting needles that cost $16, how many scarves must the student sell to break even? What is the break-even point

Answer 1

The solution is:

$160 for booth + $16 needles = $176 as capital

$15 price to sell each scarf - $4 cost of the yarn to make the scarf = $11 as profit

$176 / $11 = 16

The students must sell 16 pieces of scarves to get the breakeven point of $176 for the capital