Mike and Kim invest $8,000 in equipment to print yearbooks for schools. each yearbook costs $5 to print and sells for $25. How many yearbooks must they sell before their business breaks even?

a. 1,600
b. 400
c. 320
d. 600

I know the answer is b, but I don't know how you get it..

They make a profit of $20 on each yearbook.

$8,000 / 20 = 400

thank you

You're welcome.

D.600 To determine the number of yearbooks that must be sold before breaking even, we need to calculate the total cost and total revenue.

First, let's calculate the total cost:
The cost to print each yearbook is $5, and they invest $8,000 in equipment. Since the equipment is a one-time investment, it does not factor into the ongoing costs. Therefore, the ongoing cost is only the cost to print each yearbook.

Cost to print each yearbook = $5
Total cost = Cost to print each yearbook * Number of yearbooks

Next, let's calculate the total revenue:
The selling price of each yearbook is $25, and the total revenue is calculated by multiplying the selling price by the number of yearbooks sold.

Selling price of each yearbook = $25
Total revenue = Selling price of each yearbook * Number of yearbooks

To break even, the total cost and total revenue must be equal. Therefore, we can set up the equation:

Total cost = Total revenue

Cost to print each yearbook * Number of yearsbooks = Selling price of each yearbook * Number of yearbooks

$5 * Number of yearbooks = $25 * Number of yearbooks

Now, we can cancel out the "Number of yearbooks" term on both sides of the equation:

$5 = $25

This is not a possible situation because the cost of printing a yearbook is not equal to the selling price of a yearbook.

Therefore, if we cannot set up a valid equation, it means that there is no break-even point. In this case, since none of the given answer options match this conclusion, none of the answer options is correct for this question.