Sarah is the president of the drama club and wants to publish a newspaper. Expenses are $.90 for printing and mailing each copy, plus $600 total for research and writing. The price of the newsletter is $1.50 per copy. How many copies of the newsletter must the club sell to break even?
Answer
A
To break even, the drama club must sell 1000 copies.
B
To break even, the drama club must sell 100 copies.
C
To break even, the drama club must sell 250 copies.
D
To break even, the drama club must sell 444 copies.
Explanation
Each copy sells for $1.50 and costs $0.90 to print and mail, leaving $0.60 per copy to cover the $600 fixed research and writing cost. Break-even occurs when $600 ÷ $0.60 = 1,000 copies are sold. Therefore, the correct choice is “To break even, the drama club must sell 1000 copies.”
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