Problema Solution
A musician is planning to market a CD. The fixed costs are $450 and the variable costs are $6 per CD. The wholesale price of the CD will be $9. 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 C = total cost of making x CDs Let I = total income from making x CDs given: C+=+6x+%2B+720 I+=+10x
The problem is asking "When does the income = cost?"
180 CDs must be sold to break even