Tom is going to sell chocolate chip cookies. The ingredients cost $138. Packaging costs $0.35 He sells his cookies $2.50 per package. How many packages should he sell in order to break even?

Question

This is for a project so can you show it step by step?

Answer 1

Assuming the packaging is 0.35 per cookie, the cost is 138 + 0.35 x where x is the # of cookies

The revenue is 2.5x

138 + 0.35x = 2.5x

138 = 2.5x - 0.35x

138 = 2.15x

x= 64 and 40/215 = 64 and 8/43 = 64.1860465116279069767441860.....

which is almost 64 and 1/5 packages

The cost shall be $138 + 0.35 * (64 and 8/43) = 160.465116279....

The revenue is also 2.5*(64 and 8/43) = 160.465116279069....

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Now if the packaging is ALSO a one-time expense, then the

total cost is simply 138.35

So then the break even point is 138.35/2.50 = 55 and 3/4 = 55.75