Find the BREAK-EVEN Point

Question

Jenny will run an ice cream stand in the coming week-long multicultural event. she believes the fixed cost per day of running the stand is 60$. her best guess is that she can sell up to 250 ice cream per day at 1.50$ per ice cream. the cost of each ice cream is 0.85$.. find an expression for the daily profit, and hence find the break even point.(no profit-no loss point) ?

Answer 1

C=60+.85x

R=1.5x

Profit = R-C = 1.5x-60-.85x = .65x-60

where x< 250

max Profit = .65(250)-60 = 162.5 -60 = $102.50

breakeven output is when .65x=60,

x=60/.65 = 12/.13 = 1200/13 = about 92.3 or about 92 cones