Akeem wants to have a lemonade stand at the community fair. It costs him $2 to make each cup of lemonade plus a $40 renters fee for the stand. He sells the lemonade for $6 per cup. How many cups does akeem have to sell to break even?

Answer 1

Akeem has to sell 10 cups of lemonade to break even.

Calculation:
Total Cost = Cost per cup x Number of cups + Renters fee
Total Cost = $2 x 10 cups + $40
Total Cost = $20 + $40
Total Cost = $60

Total Revenue = Price per cup x Number of cups
Total Revenue = $6 x 10 cups
Total Revenue = $60

Since Total Cost = Total Revenue, Akeem has to sell 10 cups of lemonade to break even.