Question 20527
production cost...all figures in $....
basis...number of candles made = x
start up cost =200
making cost per candle =1.5
cost of making x candles =1.5*x
total production cost =200+1.5*x
sales revenue....
sale price per candle=4
sales revenue for x candles =4*x
now to break even............. sales revenue =production cost
so.........4*x=200+1.5*x
4*x-1.5*x=200
2.5*x=200
x=200/2.5=80
hence 80 candles are to be made to break even..