Another question for fixed costs that is not making sense.

Question

A manufactuing company makes specialized packaging for its customers.  The fixed cost of a production run is $20,000 and variable costs are $1.25 per box.  The company sells the boxes at $5.25 each.  How many boxes would need to be sold for the company to break even?

Answer 1

Cost = 20000 + 1.25n

Income = 5.25n

0 profit occurs when Cost = Income, i.e.

20000 + 1.25n = 5.25n.

Solve it for n!