A jewelry company pays $100 for advertising and $5 per necklace they create. Each necklace sells for $25. How many necklaces must the company sell in order for their expenses to equal their revenue?

Question

a) 125
b) 5
c) 150
d) 7

Answer 1

Let x be the number of necklaces they sell.
Their expenses are 100 + 5x.
Their revenue is 25x.
Set the expenses equal to the revenue: 100 + 5x = 25x.
Subtract 5x from both sides: 100 = 20x.
Divide both sides by 20: 5 = x.
The company must sell 5 necklaces to break even, so the answer is b) 5.