mike and kim invest 36,000 in equipment to print year books for school, each yearbook cost $15 to print and sells for $45. How many yearbooks must they sell before business breaks even?
break even when cost = income
So, for x books to break even,
36000 + 15x = 45x
Thank you!!
To find out how many yearbooks Mike and Kim need to sell in order to break even, we need to calculate the total cost and the total revenue.
First, let's determine the total cost. Each yearbook costs $15 to print, and they plan to print yearbooks using the $36,000 equipment investment. Therefore, the total cost is $15 multiplied by the number of yearbooks they produce.
Total cost = $15 * Number of yearbooks
Next, let's determine the total revenue. Each yearbook sells for $45, so the total revenue is $45 multiplied by the number of yearbooks they sell.
Total revenue = $45 * Number of yearbooks
Now, the break-even point is when the total cost equals the total revenue. So, we can set up the following equation:
Total cost = Total revenue
$15 * Number of yearbooks = $45 * Number of yearbooks
Now, we can solve for the number of yearbooks:
$15 * Number of yearbooks = $45 * Number of yearbooks
Dividing both sides of the equation by $15, we get:
Number of yearbooks = $36,000 / $15
Number of yearbooks = 2400
Therefore, Mike and Kim need to sell 2400 yearbooks in order to break even.