Question 832647
Their fixed cost is $22.  It doesn't matter how many they sell, it's fixed at $22.  The variable cost is 3.25.
Total cost is 22 + 3.25x
Total revenue is 6.5x
To break even, cost must equal revenue
22 + 3.25x = 6.5x
Subtract 3.25x from each side
22 = 3.25x
Divide each side by 3.25
= 6.769
They are in the red with 6 candles and in the black with 7.