Question

Hershey’s manufactures candy bars in batches of 800. The fixed cost is $20 per batch, with variable cost of $0.10x where x equals the number of batches. The equation that models the cost is rational is structured as: If the break-even point is the number of batches where the numerator and denominator are equal, what is the break-even point? Select one:
a. 200
b. 250
c. 300
d. 350

Answer 1

The answer to this word problem is letter A. 200.

Here is the solution:
given:
candy bars in batches of 800
fixed cost of $ 20 per batch
variable cost of $ 0.10 x
x= the number of batches

$ 20 ( 800 )  = 16, 000
$ 0.10 (800)        80

                     = 200