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Shelby is starting a business selling handmade necklaces. She has decided to invest an initial amount of $172 for advertising, and materials cost $7 for each necklace she makes. Shelby can sell her creations for $11 per necklace. Once she makes and sells a certain number of necklaces, she will break even, with identical expenses and sales. What would the total expenses and sales be then? How many necklaces would that take? Shelby would have total expenses and sales $ after selling necklaces.

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opudodennis

Answer:

-43 necklaces.

-total expenses=Sales=$473

Step-by-step explanation:

The breakeven point is the point where the sales revenue equals the expenditure.

-The fixed expenses is $172

-Let x be the number of necklaces sold, the breakeven point is expressed as:

[tex]Sales= Expenses\\\\11x=7x+172\\\\4x=172\\\\x=43[/tex]

Hence, Shelby has to sell 43 necklaces to breakeven.

#The expenses at the breakeven point is:

[tex]E=7x+172\\\\=7\times43+172\\\\=473[/tex]

Hence, expenses at breakevent point is $473

#Sales is equal to expenses at this point, hence, sales of $473

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