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15 August, 10:08

A toy manufacturing company makes a doll that sells for 12. it cost $5 in labor to make each doll. the total cost for the materials is $420 how many dolls must they sell to break even

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  1. 15 August, 12:13
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    Selling price for a doll is: $12. Therefore the total income is 12 x, where x is the number of dolls.

    Total cost for the materials: $420 (Fixed cost).

    Cost for the labor is $5 to make each doll or: 5 x (Variable cost).

    If a toy manufacturing company wants to break even:

    Income = FC + VC

    12 x = 420 + 5 x

    12 x - 5 x = 420

    7 x = 420

    x = 420 : 7

    x = 60

    Answer: They must sell 60 dolls to brake even.
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