Hector runs a one-product widget shop. Each month, his fixed costs, whether he produces anything or not, amount to x dollars. The marginal cost of producing and selling one widget is a constant y dollars, regardless of the number he produces. He generally can sell widgets for t dollars each. What is the minimum number of widgets he must produce, assuming he sells every widget he produces, to break even (neither make a profit nor incur a loss) in a given month?
Choose the correct choice from the following answers:
A) x/(y - t)
B) x/(t - y)
C) x
D) x/t
E) x/y
Two ways...   1) let a be the total number, so cost = a*y+x and selling price=a*t..   No profit no loss....a*y+x=a*t.....a=x/(t-y)...   x/(t - y)
<result>B</result>
Hector runs a one-product widget shop. Each month, his fixed costs, whether he produces anything or not, amount to x dollars. The marginal cost of producing and selling one widget is a constant y dollars, regardless of the number he produces. He generally can sell widgets for t dollars each. What is the minimum number of widgets he must produce, assuming he sells every widget he produces, to break even (neither make a profit nor incur a loss) in a given month?