Problema Solution
you have just graduated from college and recently opened a speciality pizza restaurant. Based on surveys conducted in your area, you determine that it is feasible to sell your speciality pizzas for $15. The cost cor making the pizzas includes a fixed cost of $55 and labor cost of $4 per pizza.
Answer provided by our tutors
The number of pizzas sold is x
The total cost = 55+4x
The revenue = 15x
Profit = R - C = 15x -(55+4x) = 11x - 55
When P = 0, 11x-55=0, x = 5
So the break-even point is when 5 pizzas are sold