Ray Bond sells handcrafted yard decorations at county fairs. The variable cost t

Question

Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is exist10 each, and he sells them for exist40. The cost to rent a booth at the fair is exist120. How many of these must Ray sell for a total profit of exist120? a. 9 b. 6 c. 8 d. 7 Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is exist10 each, and he sells them for exist40. The cost to rent a booth at the fair is exist120. How many of these must Ray sell to break even? a. 8 b. 5 c. 4 d. 7 e. 6

Explanation / Answer

Q1) Total cost will be = 10x+120

Total revenue = 40x

So, Profit = 40x-(10x+120)

but profit = 120

40x-10x-120=120

30x = 240

x = 8

So, answer is 8

b) Here profit should be zero

40x-10x-120=0

30x=120

x = 4

So, answer is 4

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