Juice boxes are sold in a local store for 65 cents each. The factory has $1400 in fixed costs plus 15 cents of additional expense for each juice box made.

Question

Juice boxes are sold in a local store for 65 cents each. The factory has $1400 in fixed costs plus 15 cents of additional expense for each juice box made. Assuming all juice boxes manufactured can be sold, find the break-even point.

Answer 1

So, with the 15 cents of cost for each juice box made, we make 65-15 cents, therefore 50 cents, for each juice box sold. So, we need to make up 1400 dollars, at 50 cents per juice box. We can set up an equation like so:

.5x = 1400

x = 1400 *2 juice boxes

Thus, 2800 juice boxes is our break even point