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# systems

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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

#1
+391
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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
#2
+101161
+1

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

Aug 24, 2018