Question

The Naturally Made Bath and Body store pays $550 a month for rent and utilities. The average cost for its products to be manufactured 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 break-even point occurs when the cost function equals the revenue function. 550 + 3.00x = 5.50x Naturally Made needs to sell products to break even. The cost or revenue when it sells the break-even number of products will be $ .

Answer 1

Answer:

The break-even point will be when he sold 220 items.

The cost of revenue when it sells the break-even number of products is $1210

Step-by-step explanation:

Cost of rent and utilities :  $550

Average cost for 1 product to be manufactured : $3.00

Average price for a product sold in the store : $5.50

The break-even point occurs when the cost function equals the revenue function.

The equation for break even point (given):

$550 + 3.00x = 5.50x$

where  Let x represent the number of products sold.

So, to calculate the break even point i.e. x

$550 = 5.50x - 3.00x$

$550 = 2.50x$

$\frac{550}{2.50} =x$

$220=x$

So, the break-even point will be when he sold 220 items.

The cost of revenue when it sells the break-even number of products:

$5.50*220$

$1210$

Hence The cost of revenue when it sells the break-even number of products is $1210

Answer 2

The break-even point occurs when the cost function equals the revenue function: 550 + 3.00x = 5.50x
Naturally Made needs to sell 220 products to break even
The cost or revenue when it sells the break-even number of products will be $1,210