Question

Suzie’s Silk Scarves is a start-up that sells high quality scarves out of a boutique store. The monthly rent of the store is $1,500 and Suzie has one manager who runs the store and earns $3,000 per month. She leases out a computer and other equipment for her store at a total monthly cost of $600, and spends another $400 each month on advertising in local newspapers and publications. Suzie pays on average $15 to import each scarf from Asia, and invests another $3 per scarf on a fancy packaging box for each scarf. She sells each scarf for $43. How many scarves must Suzie sell each month in order to break even?

Answer 1

To breaki even,
Income - Expense = 0.

X = The # of scarves sold.

43x-1500-3000-600-400-15x-3x = 0
25x - 5500 = 0
25x = 5500
X = 220 Scarves.