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

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.