Printing a newsletter costs $.75 per copy plus $250 in printers fees. The copies are sold at $2 each. How many copies must be sold to break even?

Question

Printing a newsletter costs $.75 per copy plus $250 in printers fees. The copies are sold at $2 each. How many copies must be sold to break even?

Answer 1

Cost as a function of # newsletters n is:

 

C(n) = .75n + 250

 

Revenue is $2 per newsletter sold

 

R(n) = 2n

 

To break even:

 

2n = .75n + 250

1.25n = 250

n = 250/1.25

n = 200 newsletters

 

Check:  C(200) = .75(200) + 250 = 400

            Revenue = 2(200) = 400

 

If we print and sell 200 newsletters we break even