Realize. \( \begin{array}{l}\text { MI7L2/3 Topic } 4 \text { Test (LMS graded) } \\ \text { Henry wants to sell rings at a craft fair for } \$ 8 \text { each. The materials for each ring cost } \$ 1.50 \text {, and the table rental at the fair costs } \$ 91 \text { for the day. How many rings does he need to sell for his } \\ \text { revenue to equal his expenses? } \\ \begin{array}{lll}\text { A. } 140\end{array} \\ \text { B. } 9\end{array} \) C. 10
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To determine how many rings Henry needs to sell for his revenue to equal his expenses, we first calculate his total expenses. The cost of the materials for each ring is $1.50, so if he sells \( x \) rings, the materials cost will be \( 1.50x \). Therefore, his total expense equation is \( 1.50x + 91 \). His income from selling the rings is \( 8x \). To find the breakeven point, we set his total revenue equal to his total expenses: \[ 8x = 1.50x + 91 \] Now, solving for \( x \): \[ 8x - 1.50x = 91 \] \[ 6.5x = 91 \] \[ x = \frac{91}{6.5} \approx 14 \] Henry needs to sell about 14 rings to break even. Now, while you're at it, remember to keep track of how your expenses accumulate versus your sales—those profit margins can be sneaky! Also, don't forget to consider any potential additional costs, like transportation or promotion, which could affect your overall expenses and break-even point. Good luck at the craft fair!
