Question

Mini-THON is selling candles to raise money. It costs $100 to rent a spot to sell the candles. If the candles cost the club $1 each and are being sold for $5 each, how many candles must be sold to equal the expenses?

Answer 1

To break even on the costs of renting a spot and producing the candles, Mini-THON must sell at least 25 candles, as they make a profit of $4 per candle after subtracting the production cost from the selling price.

Step-by-step explanation:

To calculate how many candles must be sold to cover the expenses of Mini-THON, we need to consider both the fixed cost of renting the spot and the cost to produce each candle. The fixed cost is $100, and each candle costs $1 to produce. With each candle being sold for $5, this means there's a profit of $4 per candle ($5 selling price - $1 cost per candle). To break even, the club needs to earn enough to cover the $100 rental fee.

First, determine the total expenses: Fixed cost ($100) + Cost per candle ($1 each). Next, calculate the profit per candle: Selling price ($5) - Cost per candle ($1) = $4 profit per candle.

Then, we divide the fixed cost by the profit per candle to find out how many must be sold to break even:

Number of candles needed = Fixed cost / Profit per candle

Number of candles needed = $100 / $4 = 25 candles

Therefore, Mini-THON needs to sell at least 25 candles to cover the fixed cost of renting the space and the cost of the candles.