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
(It’s not 7 cups)
To find the number of cups Akeem needs to sell to break even, we can set up an equation.
Let's denote the number of cups Akeem needs to sell as "x".
The total cost for Akeem to make "x" cups of lemonade is:
Cost of each cup * Number of cups = $2 * x = $2x
In addition to that, Akeem has to pay a renter's fee of $40 for the stand.
The total revenue Akeem will generate by selling "x" cups of lemonade is:
Price of each cup * Number of cups = $6 * x = $6x
For Akeem to break even, his total cost should be equal to his total revenue. So, we have the equation:
$2x + $40 = $6x
To solve this equation, we need to isolate the variable "x" on one side.
We can achieve that by subtracting $2x from both sides of the equation:
$40 = $6x - $2x
This simplifies to:
$40 = $4x
Now, we can solve for "x" by dividing both sides of the equation by $4:
$40 / $4 = $4x / $4
10 = x
Therefore, Akeem needs to sell 10 cups of lemonade to break even.
To determine how many cups Akeem needs to sell to break even, we need to consider the costs and revenue involved.
Let's break it down:
Cost per cup of lemonade: $2
Renter's fee for the stand: $40
Selling price per cup: $6
To calculate the breakeven point, we need to find out how many cups Akeem needs to sell in order to cover his costs.
First, subtract the total cost per cup from the selling price to find the profit per cup:
Profit per cup = Selling price - Cost per cup
Profit per cup = $6 - $2 = $4
Next, divide the renter's fee by the profit per cup to find out how many cups Akeem needs to sell to cover the fee:
Cups to cover renter's fee = Renter's fee / Profit per cup
Cups to cover renter's fee = $40 / $4 = 10 cups
Therefore, Akeem needs to sell at least 10 cups of lemonade to cover the renter's fee and break even.
Akeem needs to calculate the total costs to break even. The cost per cup of lemonade is $2 and the renter's fee for the stand is $40. So the total cost is $2 + $40 = $42.
To break even, Akeem needs to earn back the $42 in costs. Each cup of lemonade is sold for $6. Therefore, the number of cups Akeem needs to sell is $42 / $6 = <<42/6=7>>7 cups.
So, Akeem needs to sell 7 cups of lemonade to break even.