The designer must sell 200 hats for breaking even.
Step-by-step explanation:
Given,
Cost for material for each hat = $5.50
Selling price of each hat = $12.50
Cost spend on advertising = $1400
Let,
x represents the number of hats.
Revenue = 12.50x
Costs = 5.50x+1400
For breaking even,
Revenue = Cost
[tex]12.50x=5.50x+1400\\12.50x-5.50x=1400\\7x=1400[/tex]
Dividing both sides by 7
[tex]\frac{7x}{7}=\frac{1400}{7}\\x=200[/tex]
The designer must sell 200 hats for breaking even.
Keywords: addition, division
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