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Question
Klaus Nicholas plans to sell Christmas trees from a vacant lot in downtown Springfield. The trees will cost him $12 each. It will cost Klaus $1,500 to rent the lot from November 1 through December 30. If Klaus sells the trees for $20 each, how many trees must he sell to break even? Assume that he makes an initial, non-refundable purchase of 200 trees but can buy more trees in any quantity after that for $12 each.A) $1,500/($20-$12) = 188 trees with a very small profit on the last tree
B) $3,900/$20 = 195 trees
C) All 200 trees
D) The Christmas tree project can never break even.
Answer
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