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