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QuestionHow many tumblers must the Lafayette Band Boosters sell to break even if they bought 300 at \$15 and sell for \$20 each?

Studdy Solution

STEP 1

Assumptions1. The cost of each tumbler is 15.Thesellingpriceofeachtumbleris15. The selling price of each tumbler is 203. The number of tumblers ordered is3004. The break-even point is when the total cost equals the total revenue

STEP 2

First, we need to find the total cost of the tumblers. We can do this by multiplying the cost of each tumbler by the number of tumblers ordered.
Total cost=Cost per tumblertimesNumber of tumblersTotal\, cost = Cost\, per\, tumbler \\times Number\, of\, tumblers

STEP 3

Now, plug in the given values for the cost per tumbler and the number of tumblers to calculate the total cost.
Total cost=$15times300Total\, cost = \$15 \\times300

STEP 4

Calculate the total cost.
Total cost=$15times300=$4,500Total\, cost = \$15 \\times300 = \$4,500

STEP 5

To find the break-even point, we need to calculate how many tumblers need to be sold to cover the total cost. We can do this by dividing the total cost by the selling price of each tumbler.
Break−even point=Total cost/Selling price per tumblerBreak-even\, point = Total\, cost / Selling\, price\, per\, tumbler

STEP 6

Plug in the values for the total cost and the selling price per tumbler to calculate the break-even point.
Break−even point=$4,500/$20Break-even\, point = \$4,500 / \$20

STEP 7

Calculate the break-even point.
Break−even point=$4,500/$20=225Break-even\, point = \$4,500 / \$20 =225The Lafayette Band Boosters need to sell225 tumblers to break even.

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