Question
A small business invests 33,000 in equipment to produce a product. Each unit of the product costs $1.70 to produce and is sold for $5.00. How many items must be sold before the business breaks even?
Answers
Reiny
number of units sold --- x
profit = 5x - 1.7x = 3.3x
3.3x = 33000
x = 33000/3.3 = 10000
profit = 5x - 1.7x = 3.3x
3.3x = 33000
x = 33000/3.3 = 10000
Damon
cost = 33,000 + 1.70 n
revenue = 5 n
profit = 5 n - (33,000+1.7n)
so for zero profit
33,000 + 1.7 n = 5 n
33,000 = 3.3 n
n = 10,000
revenue = 5 n
profit = 5 n - (33,000+1.7n)
so for zero profit
33,000 + 1.7 n = 5 n
33,000 = 3.3 n
n = 10,000