Question

samir, a carpenter, spent $300 on specialty tools to make toy horses for children. for each horse, he spends $75 on supplies. he charges $125 for each horse. how many horses must samir sell to break even?
2
3
4
6

Explanation:

Step1: Define variables and break-even condition

Let $x$ = number of toy horses. At break-even, Total Revenue = Total Cost.
Total Cost = Fixed Cost + Variable Cost = $300 + 75x$
Total Revenue = Price per unit $\times$ Quantity = $125x$
Set up equation: $125x = 300 + 75x$

Step2: Isolate the variable term

Subtract $75x$ from both sides:
$125x - 75x = 300 + 75x - 75x$
$50x = 300$

Step3: Solve for $x$

Divide both sides by 50:
$x = \frac{300}{50}$
$x = 6$

Answer:

6 (Option D. 6)