math homework

Question

You sell a product for $45. Your weekly fixed costs are $190, and it costs you $2.60 per unit in variable costs to produce the product.



If you sell 5 units this week, will you break even?

Answer 1

In order to see if you will breakeven and/or make a profit you want to find the total revenue and compare it to the total costs. In this situation we have

45 x 5 = $225 for total revenue

190 + 2.60(5) = $203 for total costs

since total revenue exceeds total costs that means that, yes, you will not only breakeven but make a slight profit

Answer 2

You sell a product for $45. Your weekly fixed costs are $190, and it costs you $2.60 per unit in variable costs to produce the product

45 - 2.60 = 42.40 (profit per item)

y = 42.40x  - 190

y is how much you make in profit (income - outgo)

y = 42.40(5) - 190

y = 212 - 190

y = 22

You'll make $22 this week.  Better sell more or you will starve...