A tool manufacturer has fixed costs of $124.00 a day. It costs $1.00 to make a screwdriver. The company gets $3.00 per screwdriver sold. How many screwdrivers must be produced daily to break even?

 Aug 24, 2018

The profit of the screwdriver is \($2.00\), and we need to sell enough screwdrivers to make a profit of \($124.00\). We can solve this by doing \(\frac{124}{2} = 62\). So you need to have \(62\) screwdrivers produced.


- Daisy

 Aug 24, 2018

Thanks, Daisy.....!!!...here's another way to see this


Break-even point is where  Costs  = Revenue

Let the number of screwdrivers that need to be sold  = S


So...Total  Costs = 124  +  1S

Total Revenue  = 3S


Set these even


124 + 1S  = 3S     subtract 1S from both sides

124  = 2S    divide both sides by 2

62  =  S   ⇒   62 screwdrivers must be sold to break even



cool cool cool

 Aug 24, 2018

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