Akeem wants to have a lemonade stand at the community fair. It costs him $2 to make each cup of lemonade plus a $40 renter's fee for the stand. He sells the lemonade for $6 per cup. How many cups does Akeem have to sell to break even?(1 point)%0D%0A cups
To figure out how many cups Akeem needs to sell to break even, we need to calculate his total expenses and then divide it by the price per cup.
Akeem's expenses for each cup of lemonade include the $2 cost to make the lemonade and the $40 renters fee for the stand. So, his total cost per cup is $2 + $40 = $42.
Now, we can calculate the number of cups Akeem needs to sell to break even by dividing his total costs by the price per cup.
Break-even point = Total costs / Price per cup
Break-even point = $42 / $6 = 7
Therefore, Akeem needs to sell 7 cups of lemonade to break even at the community fair.
To break even, Akeem needs to cover his costs, which include the cost of making each cup of lemonade ($2) plus the renter's fee for the stand ($40).
So, the total cost per cup is $2 + $40 = $42.
To find out how many cups Akeem needs to sell to break even, we divide the total cost by the selling price per cup:
$42 / $6 = 7 cups.
Therefore, Akeem needs to sell at least 7 cups of lemonade to break even.
To calculate the break-even point, we need to consider the costs Akeem incurs and the revenue he generates.
Akeem's costs per cup include the cost to make the lemonade, which is $2, and the renter's fee for the stand, which is $40. Therefore, the total cost per cup is $2 + $40 = $<<2+40=42>>42.
Akeem sells each cup of lemonade for $6.
To break even, Akeem's total revenue needs to equal his total costs.
Let's assume Akeem sells n cups of lemonade.
Total revenue = Revenue per cup × Number of cups sold
Total revenue = $6 × n
Total costs = Cost per cup × Number of cups sold + Renter's fee
Total costs = $42 × n + $40
Since the break-even point occurs when total revenue equals total costs, we can equate these two expressions.
$6 × n = $42 × n + $40
By simplifying the equation, we get:
$6n = $42n + $40
Rearranging the equation, we find:
$42n - $6n = $40
$36n = $40
n = $40/$36
Calculating this value:
n ≈ 1.11
Akeem needs to sell approximately 1.11 cups of lemonade to break even. Since we cannot sell a fraction of a cup, he needs to sell at least 2 cups of lemonade to break even.
So, Akeem has to sell at least 2 cups to break even.