To calculate the break-even point, we need to consider the costs Akeem incurs and the revenue he generates.
Akeem's costs per cup include the cost to make the lemonade, which is $2, and the renter's fee for the stand, which is $40. Therefore, the total cost per cup is $2 + $40 = $<<2+40=42>>42.
Akeem sells each cup of lemonade for $6.
To break even, Akeem's total revenue needs to equal his total costs.
Let's assume Akeem sells n cups of lemonade.
Total revenue = Revenue per cup × Number of cups sold
Total revenue = $6 × n
Total costs = Cost per cup × Number of cups sold + Renter's fee
Total costs = $42 × n + $40
Since the break-even point occurs when total revenue equals total costs, we can equate these two expressions.
$6 × n = $42 × n + $40
By simplifying the equation, we get:
$6n = $42n + $40
Rearranging the equation, we find:
$42n - $6n = $40
$36n = $40
n = $40/$36
Calculating this value:
n ≈ 1.11
Akeem needs to sell approximately 1.11 cups of lemonade to break even. Since we cannot sell a fraction of a cup, he needs to sell at least 2 cups of lemonade to break even.
So, Akeem has to sell at least 2 cups to break even.
Akeem wants to have a lemonade stand at the community fair. It costs him $2 to make each cup of lemonade plus a $40 renter's fee for the stand. He sells the lemonade for $6 per cup. How many cups does Akeem have to sell to break even?(1 point)%0D%0A cups
1 answer