The Naturally Made Bath and Body store pays $550 a month for rent and utilities. The average cost for its products to be manufac
tured is about $3.00 an item. If the average price for a product sold in the store is $5.50, what will the break-even point be? Let x represent the number of products sold. The cost function that represents the situation is . The revenue function that represents the situation is
To determine the equation to represent this situation, we can use 2.5x to show the amount of profit per product, and a y intercept value of -550 to show the cost for rent. Now, we have the equation y=2.5x-550.
The break even point is when the profits balance out the expenses, so in this case, y should equal 0.
