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alexandr1967 [171]
3 years ago
9

There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid

to the university for the right to sell these programs. Katherine is selling programs for $5 each. Katherine D’Ann has become concerned that sales may fall, as the team is on a terrible losing streak and attendance has fallen off. In fact, Katherine believes that she will sell only 500 programs for the next game. If it was possible to raise the selling price of the program and still sell 500, what would the price have to be for Katherine to break even by selling 500?
Mathematics
1 answer:
Yanka [14]3 years ago
6 0

Answer:

The price would have to be $5.8 for Katherine to break even by selling 500

Step-by-step explanation:

Fixed cost = $400

Variable cost = $3

Variable cost for 500 programs= 500 \times 3 = 1500

There is also a $1,000 fee that is paid to the university for the right to sell these programs.

So, Total cost = 400+1000+1500=$2900

Now we are given that Katherine is selling programs for $5 each.

Let p be the price of program

So, Revenue =generated from selling 500 programs = 500p

So, 500 p = 2900

p = \frac{2900}{500}

p = 5.8

Hence  the price would have to be $5.8 for Katherine to break even by selling 500

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