Students at Hammond Middle School are raising money for the end-of-year school party. They decide to sell roses for Valentine's Day. They also need $60 to buy ribbon and paper to protect the roses as well as materials for advertising the sale. They sell each rose for $1.30.
a. How many roses must they sell to break even?
b. What is the students' profit if they sell 50 roses, 100 roses, and 200 roses?
Answer (2)
The students at Hammond Middle School need to calculate how many roses they must sell to break even and what their profit would be at different sales levels. To break even, they must cover the initial $60 cost for ribbon, paper, and advertising. Each rose is sold for $1.30, so the break-even calculation would be $60 divided by $1.30 per rose. For the profit calculations, they subtract the fixed cost from the total revenue which is the number of roses sold multiplied by the price per rose ($1.30).
Break-Even Calculation:
To find the break-even point:
Divide the total fixed costs ($60) by the price per rose ($1.30).
$60 / $1.30 = approximately 46 roses (rounding up since you can't sell a fraction of a rose).
Profit Calculations:
For 50 roses: Total revenue would be 50 roses x $1.30 = $65. Profit would be $65 - $60 = $5.
For 100 roses: Total revenue would be 100 roses x $1.30 = $130. Profit would be $130 - $60 = $70.
For 200 roses: Total revenue would be 200 roses x $1.30 = $260. Profit would be $260 - $60 = $200.
To break even, the students must sell at least 47 roses. Selling 50 roses results in a profit of $5, selling 100 roses yields a profit of $70, and selling 200 roses results in a profit of $200.
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