Problema Solution
You set up a business and make an initial
investment of $14000. The unit cost of the
product is $2.27 and the selling price is $3.27.
How many units must you sell to break
even?
Answer in units of units
Answer provided by our tutors
let 'n' represent the number of units sold
total costs:
2.27n + 14000
total revenue:
3.27n
we want to solve for 'n' when total costs equal total revenue:
2.27n + 14000 = 3.27n
n = 14000
14,000 units must be sold in order to break even