Question

Mrs. Merton has decided to set up a pie making business. To set herself up in business she must purchase equipment totalling $200, plus each pie that she makes costs her 25 cents. She is planning to sell her pies for $1. 50 each. If x denotes the number of pies that are made, what is the total revenue at breakeven?

Answer 1

Answer:

• $240

Step-by-step explanation:

Breakeven is the revenue with no profit or loss. The money spent is same as money made.

Money spent is

• 200 + 025x

Money made is

• 1.5x

Since these are same, the number of pies is

• 200 + 0.25x = 1.5x
• 1.5x - 0.25x = 200
• 1.25x = 200
• x = 200/1.25
• x = 160

The revenue is

• 200 + 0.25*160 =
• 200 + 40 =
• 240