document.write( "Question 510130: Your club is selling candles to raise money. It costs $100 to rent a booth to sell candles. If the candles cost $1 each and are sold for $5 each, how many candle must be sold to equal your expenses? \n" ); document.write( "
Algebra.Com's Answer #341718 by oberobic(2304)![]() ![]() ![]() You can put this solution on YOUR website! Profit = Total Revenue - Total Cost \n" ); document.write( ". \n" ); document.write( "Total Cost = Variable Cost per Unit * Number of Units Produced + Fixed Costs \n" ); document.write( ". \n" ); document.write( "Total Revenue = Sales Price * Units Sold \n" ); document.write( ". \n" ); document.write( "x = number of candles \n" ); document.write( ". \n" ); document.write( "TC = $1/candle * x candles + $100 \n" ); document.write( ". \n" ); document.write( "TR = $5/candle * x \n" ); document.write( ". \n" ); document.write( "We want to find the point where TC =TR, which is the break-even point. \n" ); document.write( ". \n" ); document.write( "1x + 100 = 5x \n" ); document.write( "100 = 4x \n" ); document.write( "x = 25 \n" ); document.write( ". \n" ); document.write( "So when you sell 25 candles at $5, you achieve $0 profitability. \n" ); document.write( "Of course, that means you have paid your fixed costs ($100). \n" ); document.write( "In turn that means the rest of your candles sales contribute profit. \n" ); document.write( ". \n" ); document.write( "In the following graph, the red line is TC and the green line is TR. \n" ); document.write( ". \n" ); document.write( " |