Problema Solution
A smal fast food restaurant invests $5000 to produce a new food item that will sell for $3.49. Each item can be produced for $2.16. How many must be sold to break even. Write a system of equations.
Answer provided by our tutors
The total cost of producing x units and i = 5000 the initial cost is
C = 2.16*x + i
C = 2.16*x + 5000
The revenue obtained by selling x units is
R = 3.49x
Because the break-even point occurs when R=C you have C = 3.49x and the system of equations to solve is
C = 2.16*x + 5000
C = 3.49x
solving the system by substitution we have
2.16*x + 5000 = 3.49x
x = 3759.3985
click here to see the step by step solution of the equation
x = 3759 units
the fast food restaurant must sell about 3759 units to break even.