Q:

The owner of an office supply store initially spends $400 to bring in a new line of pens that he wants to sell. He buys a pack of 10 pens for $3 and sells each pack for $5. He plots one line to represent his costs and another to represent his income. Which statement about the situation is true?A ) The store owner will never break even.B ) The store owner’s costs will always be more than his income.C ) The store owner will break even when he sells 200 packs of pens.D ) The store owner will break even when he sells 1,000 packs of pens.E ) The store owner’s income is more than his costs until he sells 200 packs of pens.

Accepted Solution

A:
I used a break-even calculator to determine this:
The store owner will have to sell 200 packs of pens to break even

Hope this helps.