Word problem

Question

You dicide to market your own custom computer software. You must invest $3,255 for computer hardware, and spend $2.90 to buy and package each disk. If each program sells for $13.75, how many copies must you sell to break even?

Answer 1

Hi Jorge,

 

In order to break even your income must equal your expenses

 

Expenses

3255          hardware - fixed cost

2.90           per disk - variable cost (this varies as you create more disks

 

Income

13.75          per disk - varies as you sell more

 

Let x = number of disks

 

then

 

3255 + 2.9x = 13.75x            (this is your break even equation

 

now solve for x

 

3255 = 10.85x

 

x = 300         (so you must sell 300 copies to break even

 

Hope this helps