Marcy’s company produces grandfather clocks. Each clock costs them $164 to make, and they can sell a clock for $625. If their annual overhead costs, not counting the cost to produce the clocks, comes to $96,000, how many clocks must Marcy’s company sell each year to break even? Round to the nearest whole clock, if necessary.

Each clock contributes $625 − $164 = $461 toward overhead after its production cost is paid. To break even, the company must cover $96,000 in overhead: $96,000 ÷ $461 ≈ 208.24 clocks. Since it must sell a whole number of clocks and 208 is the nearest whole number, the answer is 208 clocks.

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