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 the number of necklaces sold be represented by x.

The total cost for creating x necklaces is $100 + $5x.
The total revenue from selling x necklaces is $25x.

Setting the cost equal to the revenue:
$100 + $5x = $25x
$100 = $20x
$5 = x

Therefore, the company must sell 5 necklaces for their expenses to equal their revenue.

Answer: B) 5