Answer:a)167 pies
b) 217 pies
Step-by-step explanation:
Breakeven is the point at which cost and income are equal
Let the number of pies be x.
Cost of making x pies = 4x
He also has monthly expenses of $1000 for the shop
Total cost = 4x + 1000
He plans on charging $10 per pie
Revenue for x pies = 10x
Profit = revenue for x pies- cost of making x pies
To break even
cost of making x pies+ monthly expenses = revenue
4x + 1000= 10x
6x = 1000
x = 166.7
Approximately 167 pies
To make profit of $500
Revenue at break even point = 167×10 = $1670
Revenue + profit = 1670+500=$2170
To get this new revenue at the price of $10 per pie
Number of pies to be sold = 2170/10
= 217 pies
He needs to sell 217 pies to make $500 profit
