Word problem

Question

you decide to market your own custom computer software.you must invest $2754 on computer hardware and spend $4.40 to buy and package each disk.if each program sells for $12.50, how  many copies must you sell to break even

Answer 1

Break even means your Income and your expenses will be the same

 

What is your income

 

Number of disks sold times 12.50

 

What is your expense

 

You paid 2754 to get your equipment and that is called a fixed expense, this one only happens once.

 

You also pay 4.40 for every disk that you buy and package  so this is a variable expense and must be multiplied by the number of disks.

 

Let N = number of disks sold

 

I = Income

 

I = 12.50 * N

 

 

E = Expense

 

E = 2754 + 4.4 * N

 

 

Now set I and E equal to each other and solve for N and you will have the answer.

 

Hope this helps.