It costs $1200 to start up a business selling hot dogs on the beach. Each hot dog costs 40c to produce.
a) Find the cost equation.
b) How many hot dogs are produced if the total cost is $1560.
c) How many hot dogs must be sold at two for $1 to break even.
If x hot dogs are produced,
Cost(x) = .4x + 1200
b) if cost = 1560,
1560 = .4x + 1200
.4x = 360
x = 900 <---- hot dogs produced
c) selling price of hot dogs = $1/2 dogs = $.5 per dog
Break even ---> when revenue = cost
.5x = .4x + 1200
.1x = 1200
x = 12,000 <------ must sell
check: return on selling 12000 at 50 cents or 6000 at $1 = $6000
cost to make 12,000 hot dogs = .4(12000) + 1200 = $6000
looks good