Midtown Delivery Service delivers packages which cost $1.30 per package. The fixed cost to run the delivery truck is $175 per day. If the company charges $8.30 per package, how many packages must be delivered daily to break even?
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1 Response
I assume this means the delivery service charges $8.30 per package, but costs them $1.30 on their end, so that's a profit of $7 each package. So, divide the cost to run the truck each day ($175) by the profit of the package ($7) and you'll get 25 packages. So, that's 25 packages each day to break even, per truck. Unless I'm missing something.
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