Problema Solution
A musician is planning to market a CD. The fixed costs are $1140 and the variable costs are $4 per CD. The wholesale price of the CD will be $10. For the artist to make a profit, revenues must be greater than costs.
How many CDs, x, must be sold for the musician to make a profit?
Answer provided by our tutors
Let = total cost of making CDs
Let = total income from making CDs
given:
The problem is asking "When does the income = cost?"
180 CDs must be sold to break even