SOLUTION: a hotdog stand can purchase hot dogs for $0.35 each and buns for $0.20 each. It has fixed costs of $50 and each hotdog sells for $1. 1. write a linear equation for cost and rev

Algebra ->  Linear-equations -> SOLUTION: a hotdog stand can purchase hot dogs for $0.35 each and buns for $0.20 each. It has fixed costs of $50 and each hotdog sells for $1. 1. write a linear equation for cost and rev      Log On


   

Question 234888: a hotdog stand can purchase hot dogs for $0.35 each and buns for $0.20 each. It has fixed costs of $50 and each hotdog sells for $1.
1. write a linear equation for cost and revenue
2. determine break even point
price $1.00 - cost $0.55 means a profit of $0.45 each
so I think you would take the fixed cost of $50 and divide it by the profit $.045 to come up with a break even point of 111 hotdogs???????
Thanks!!!
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
I'll graph the Cost and Revenue
The graph will have number of hotdogs sold, n on the x-axis
Revenue, r and also cost, c are plotted on the y-axis
The cost of making n hotdogs is
c+=+.35n+%2B+.2n+%2B+50
c+=+.55n+%2B+50
r+=+1%2An
Plotting these 2 lines on the same graph, the profit
is always r+-+c, which is the vertical distance
between the 2 lines
The break-even point is where the lines meet, or when r+=+c
+graph%28+400%2C+400%2C+-20%2C+200%2C+-20%2C+200%2C+.55x+%2B+50%2C+x%29+
At r+=+c, n+=+.55n+%2B+50
.45n+=+50
n+=+111
Cost and Revenue are both $111 also