SOLUTION: You invest $40,000 to start a nacho stand in a shopping mall. You can make each basket of nachos for $0.70. How many baskets must you sell before your average cost per basket is $1

Algebra ->  Expressions-with-variables -> SOLUTION: You invest $40,000 to start a nacho stand in a shopping mall. You can make each basket of nachos for $0.70. How many baskets must you sell before your average cost per basket is $1      Log On


   

Question 1140665: You invest $40,000 to start a nacho stand in a shopping mall. You can make each basket of nachos for $0.70. How many baskets must you sell before your average cost per basket is $1.50?
I don't really know where to start! Is there a formula for this?
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


Your cost is the initial investment of $40,000, plus $0.70 for each basket you make. If x is the number of baskets you make, then your total cost is

40000%2B0.70x

The average cost per basket is your total cost, divided by the number of baskets:

%2840000%2B0.70x%29%2Fx

You want to know when the average cost per basket is $1.50:

%2840000%2B0.70x%29%2Fx+=+1.50

Solve using basic algebra....