4. Break-Even Analysis
1 answer:
Answer:
x = 1178 games
Step-by-step explanation:
Let the number of games = x
Let the total cost = Tc
Let the total revenue = Tr
Given the following data;
Investment = $10,000
Cost of each game = $1.50
Selling cost = $9.99
Total cost, Tc = (Cost of each game * Number of games) + Investment
Tc = 1.50x + 10000
Total revenue, Tr = Selling cost * Number of games
Tr = 9.99x
Breakeven point is when total cost is equal to total revenue;
Tc = Tr
x = 1177.86 ≈ 1178 games.
<em>Therefore, the number of games that must be sold before the business breaks even is 1178 games. </em>
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Answer: The consultant earn $50 each hour.
Explanation:
It is given that for 4 hours of work, the consultant charges $400. For 5 hours of work, she charges $450. The amount that a consultant charges for her work can be modeled using a linear function.
If the linear function represents the amount earn by consultant in hours the the coordinates can be written as (4, 400) and (5, 450).
If we want to find how much money does the consultant earn each hour, so first we have to find the slope of linear function which passing through two points (4, 400) and (5, 450).
In the linear function the slope show the earning of consultant per hour, therefore consultant earn $50 each hour.