mike and kim invest $18,000 in equipment to print yearbooks for schools. each yearbook costs $5 to print and…

mike and kim invest $18,000 in equipment to print yearbooks for schools. each yearbook costs $5 to print and sells for $30. how many yearbooks must they sell before their business breaks even? a. 720 b. 3,600 c. 600 d. 1,060 please select the best answer from the choices provided

mike and kim invest $18,000 in equipment to print yearbooks for schools. each yearbook costs $5 to print and sells for $30. how many yearbooks must they sell before their business breaks even? a. 720 b. 3,600 c. 600 d. 1,060 please select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate profit per yearbook

Profit per yearbook = Selling - Cost. So, $30 - 5= 25$.

Step2: Calculate break - even quantity

Let the number of yearbooks be $x$. At break - even, total profit = initial investment. We know initial investment is $18000$ and profit per yearbook is $25$. So, $x=\frac{18000}{25}=720$.

Answer:

A. 720