Problema Solution
A musician is planning to market a CD. The fixed costs are $1190 and the variable costs are $3 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 break even?
Answer provided by our tutors
The number of CDs sold is x
So
10x>1190+3x
x>170
So
For the artist to make a profit, more than 170 CDs should be sold