Question
A small software company invests $30,000 to produce a software package that will sell for $64.95. Each unit can be produced for $42.25.
How many units must be sold to break even?
How many units must be sold to make a profit of $100,000?
How many units must be sold to break even?
How many units must be sold to make a profit of $100,000?
Answers
Steve
break-even is where cost=revenue. So, you want to solve for x where
42.25x + 30000 = 64.95x
Next, you want
64.95x = 42.25x + 30000 + 100000
42.25x + 30000 = 64.95x
Next, you want
64.95x = 42.25x + 30000 + 100000