Selling price for a doll is: $12. Therefore the total income is 12 x, where x is the number of dolls.
Total cost for the materials: $420 ( Fixed cost ).
Cost for the labor is $5 to make each doll or: 5 x ( Variable cost ).
If a toy manufacturing company wants to break even:
Income = FC + VC
12 x = 420 + 5 x
12 x - 5 x = 420
7 x = 420
x = 420 : 7
x = 60
Answer: They must sell 60 dolls to brake even.
