Answer: you must sell the remainder at $7 so as to suffer no loss and break even.
Step-by-step explanation:
You bought 300 barrels of used electronics components at $3 per barrel. It means that the cost was
300 × 3 = $900
If 120 of them were ruined in your leaky storage building, it means that the additional cost incurred would be
120 × 3 = $360
Total cost incurred would be
900 + 360 = $1260
To break even,
Revenue = total cost
Let x represent the price per barrel that you must sell the remainder so as to suffer no loss and break even. The remainder is
300 - 120 = 180
Revenue from the remainder is
180 × x = $180x
Therefore,
180x = 1260
x = 1260/180
x = 7
