Based on this problem:
"Wayne owns a shaved ice stand. He sells 700 shaved ice cups per month at $1.50 each, making the total revenue $1,050. Each shaved ice costs Wayne $0.50 and he has fixed costs of $750, making his total costs $1,100. Therefore, he realizes a loss of $50 a month. Help him determine what his break-even point is.
Break-Even Analysis for Wayne's shaved ice stand"
Fixed Cost = 750.00
Variable Cost = 0.50
Price = 1.50
Break-Even Point = 750.00
What is the suspend of this:If you want to stay in it, what price you need to obtain a break-even point of 725?
To determine the price Wayne needs to obtain a break-even point of $725, we can use the break-even formula:
Break-Even Point = Fixed Costs / (Price - Variable Costs)
Given that Wayne's fixed costs are $750 and his variable cost is $0.50, we can plug these values into the formula and solve for the price:
725 = 750 / (Price - 0.50)
To isolate the price, we can multiply both sides of the equation by (Price - 0.50):
725 * (Price - 0.50) = 750
Expanding the equation:
725 * Price - 725 * 0.50 = 750
Simplifying the equation:
725 * Price - 362.50 = 750
Moving the constant term to the other side of the equation:
725 * Price = 750 + 362.50
Combining like terms:
725 * Price = 1112.50
Finally, to solve for Price, we divide both sides of the equation by 725:
Price = 1112.50 / 725
Using a calculator, we find that Price is approximately $1.5345 (rounded to four decimal places).
Therefore, Wayne needs to set the price at $1.5345 (round as applicable) per shaved ice cup in order to obtain a break-even point of $725.