Answer:
They need to sell 14 cakes to break even.
Step-by-step explanation:
The selling price of each cake = $ 4
The amount spent on the advertisement = $45
The cost of each cake = 80 cents =$ 0.8
Let us assume the number of cakes sold to BREAK EVEN = m
⇒ For m cakes: TOTAL COST = TOTAL EARNED
Now, if the cost of 1 cake = $0.8
So, the cost of making m cakes = m X ( cost of 1 cake) = m x ( 0.8) = 0.8 m
Total Cost of m cakes = Making cost + Advertisement cost
= 0.8 m + $45
⇒C = 0.8 m + 45 ........... (1)
Here, the selling price of 1 cake = $4
So, the cost of selling m cakes = m X ( Sell cost of 1 cake)
= m x ( 4) = 4 m
⇒S = 4 m ........... (2)
To break even: S = C ⇒0.8 m + 45 = 4 m
or, 45 = 3.2 m
or, m = 45/3.2 = 14.06≈ 14
⇒ m = 14
Hence, they need to sell 14 cakes to break even.
