document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=425882>Question 425882</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Steve invests in a circus production. The coast includes an overhead of $81,000, plus production costs of $7,000 per performance. A sold-out performance brings in $16,000, Determine the number of sold-out performances, x, needed to break even. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #296393 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=296393\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> c = f + i*x<BR>\n" );
document.write( "c = cost<BR>\n" );
document.write( "f = fixed cost<BR>\n" );
document.write( "i = incremental cost<BR>\n" );
document.write( "x = number of increments\r<BR>\n" );
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document.write( "f = 81,000 fixed overhead<BR>\n" );
document.write( "i = 7,000 per performance<BR>\n" );
document.write( "x = number of performances\r<BR>\n" );
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document.write( "r = 16,000 per performance<BR>\n" );
document.write( "x = number of performances\r<BR>\n" );
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document.write( "formula to break even is:\r<BR>\n" );
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document.write( "r*x = f + i*x\r<BR>\n" );
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document.write( "this becomes:\r<BR>\n" );
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document.write( "16,000*x = 81,000 + 7,000*x\r<BR>\n" );
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document.write( "subtract 7,000 * x from both sides of the equation to get:<BR>\n" );
document.write( "16,000*x - 7,000*x = 81,000<BR>\n" );
document.write( "combine like terms to get:<BR>\n" );
document.write( "9,000*x = 81,000<BR>\n" );
document.write( "divide both sides of equation by 9,000 to get:<BR>\n" );
document.write( "x = 9\r<BR>\n" );
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document.write( "if we did this correctly, steve should break after 9 performances.\r<BR>\n" );
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document.write( "after 9 performances, revenue = 9 * $16,000 = $144,000\r<BR>\n" );
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document.write( "after 9 performances, cost = $81,000 + 9 * $7,000 = $81,000 + $63,000 = $144,000\r<BR>\n" );
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document.write( "that's the break even point.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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