The bakery’s daily production costs are $1.50 per cake baked plus a fixed cost of $676. The cakes are sold by the grocery stores for $8.00 each.

Question

The bakery’s daily production costs are $1.50 per cake baked plus a fixed cost of $676. The cakes are sold by the grocery stores for $8.00 each. How many total cakes must be sold daily for the local bakery to break even?

Answer 1

Hi, Ty.

Okay, so you need to find the amount of cakes sold to break even.

So, let X be the number of cakes sold in a day.

If your costs are 676 dollars and 1.50/cake we need to find out how many cakes need to be sold at 8.00 each to break even.

676 + 1.50X = 8.00X

676 = 6.50X

X = 104 cakes

 

Let's check our answer:

676 + 1.50x104 = 832

and

8 x 104 = 832

Therefore your answer is 104 cakes

 

Answer 2

1.5c + 676 = 8c

6.5c = 676

c = 104 cakes