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A clothing store spends $11 for each pair of shorts it produces and has fixed costs of $450. If the store makes 40 pairs of shorts, how much should the store charge for each pair of shorts in order to break even?

Respuesta :

Answer:

Step-by-step explanation:

the answer is $22.95

In order to break even store need to charge $22.25 per pair of shorts.

How to form an equation?

Determine the known quantities and designate the unknown quantity as a variable while trying to set up or construct a linear equation to fit a real-world application.

In other words, an equation is a set of variables that are constrained through a situation or case.

Given,

Fixed cost = $450

Cost of each pair = $11

Number of pairs = 40

So,

The total cost of manufacturing

450 + 11(40) = $890

Now,

Let's say the store charges x per short

Total income = 40x

Now,

At break-even point

The total cost of manufacturing = Total income

890 = 40x

x = $22.25

Hence, In order to break even store need to charge $22.25 per pair of shorts.

For more about the equation,

https://brainly.com/question/10413253

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