Question 470417
An-Mei owns a business making and selling jackets. She has a fixed cost of $1430.
 It costs $63 to produce each jacket. The selling price is $76 per jacket.
 Determine the number of jackets that must be made and sold in order to break even.
:
We have two equations, let x = no. of jackets
Cost
C = 63x + 1430
and
Revenue
R = 76x
:
Break even occurs when R = C, therefore
76x = 63x + 1430
76x - 63x = 1430
13x = 1430
x = {{{1430/13}}}
x = 110 jacket have to be produced to break even
:
:
Prove this to yourself
76(110) =
63(110) + 1430 =
:
That was pretty easy, wasn't it?