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)
_ cups
To determine how many cups Akeem needs to sell to break even, we need to calculate the total cost and total revenue.
The total cost consists of the cost to make each cup of lemonade and the renter's fee. Since it costs $2 to make each cup and there is a $40 renter's fee, the total cost is $2 × _ cups + $40.
The total revenue is the price Akeem sells each cup of lemonade multiplied by the number of cups he sells. Since he sells each cup for $6, the total revenue is $6 × _ cups.
To break even, the total cost and total revenue must be equal. So we can set up the equation:
$2 × _ cups + $40 = $6 × _ cups
Now we can solve for _ cups to find the number Akeem needs to sell to break even.
To break even, Akeem needs to cover his costs, which include the cost of making each cup of lemonade and the renter's fee for the stand.
The cost of making each cup of lemonade is $2.
The renter's fee for the stand is $40.
So, Akeem's total costs are $2 + $40 = $42.
To break even, Akeem needs to earn enough money to cover his costs.
He sells each cup of lemonade for $6.
To find out how many cups he needs to sell to break even, we can divide his total costs by the price per cup:
$42 / $6 = 7.
Therefore, Akeem needs to sell 7 cups of lemonade to break even.
So, Akeem needs to sell _7_ cups of lemonade to break even.
To determine the number of cups Akeem needs to sell to break even, we need to calculate his total expenses and divide it by the profit per cup.
Akeem's expenses for each cup of lemonade are $2 for the cost of making it and a $40 renter's fee for the stand. So, his total expenses per cup will be $2 + $40 = $42.
Next, we need to calculate Akeem's profit per cup. He sells each cup for $6, and since his total expenses per cup are $42, his profit per cup will be $6 - $42 = -$36 (since it is a negative value).
To break even, Akeem's profit per cup needs to be zero. Therefore, we can set up the following equation:
Profit per cup * Number of cups = 0
Plugging in the values we have, we get:
-$36 * Number of cups = 0
To solve for the number of cups, we can divide both sides of the equation by -$36:
Number of cups = 0 / -$36
Since any number divided by zero is undefined, we cannot find an exact number of cups Akeem needs to sell to break even. However, we can conclude that Akeem will never break even by selling cups of lemonade at this price and expense structure.