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Question 234886: a store can purchase t-shirts for $7 each. It has fixed costs of $2,500. Each t-shirt is sold for $18
1. how do i write a linear equation for both cost and revenue
2. determine the break even point.
I figure the cost is $7 and the profit is $11 so the break even point would be $2,500 divided by 11 - would that be right
sorry - this is just not clicking. THANKS!!!!!
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! a store can purchase t-shirts for $7 each. It has fixed costs of $2,500. Each t-shirt is sold for $18
1. how do i write a linear equation for both cost and revenue
Revenue = 18x where x is the number of t-shirts sold.
Cost = 2500 + 7x
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Determine the break even point.
Breakeven occurs when cost = revenue
2500+7x = 18x
11x = 2500
x = 227.27
Rounding up: x = 228
The business breaks even if it sells 228 t-shirts
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Cheers,
Stan H.
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