Akeem wants to have a lemonade stand at the community fair. It cost him $2 to make a cup and $40 for the renter's fee for the stand. He sells the lemonade for $6 per cup. How many cups do akeem have to sell to break even.
To determine how many cups Akeem needs to sell to break even, we need to find the total cost and compare it to the total revenue.
Total cost = Cost per cup x Number of cups + Renter's fee
Total cost = $2 x Number of cups + $40
Total revenue = Selling price per cup x Number of cups
Total revenue = $6 x Number of cups
To break even, the total revenue must be equal to the total cost.
Total revenue = Total cost
So, we can set up the equation:
$6 x Number of cups = $2 x Number of cups + $40
To find the value of the Number of cups, we can solve this equation:
$6 x Number of cups - $2 x Number of cups = $40
$4 x Number of cups = $40
Number of cups = $40 / $4
Number of cups = 10
Therefore, Akeem needs to sell 10 cups of lemonade to break even.
To break even, Akeem needs to earn back the total cost of making the cups and paying for the stand.
The cost of making one cup is $2.
The renter's fee for the stand is $40.
So the total cost Akeem needs to cover is $2 + $40 = $<<2+40=42>>42.
To determine how many cups Akeem needs to sell to break even, we divide the total cost by the selling price per cup:
$42/$6 = <<42/6=7>>7.
Therefore, Akeem needs to sell 7 cups to break even.
To find out how many cups Akeem needs to sell to break even, we need to calculate the total cost and the total revenue.
The total cost is the sum of the cost per cup and the renter's fee:
Total cost = Cost per cup + Renter's fee
Total cost = $2 + $40
Total cost = $42
The total revenue is the product of the selling price per cup and the number of cups sold:
Total revenue = Selling price per cup * Number of cups sold
To break even, the total cost must be equal to the total revenue:
Total cost = Total revenue
So, we can set up the equation:
$42 = $6 * Number of cups sold
To solve for the number of cups sold, divide both sides of the equation by $6:
Number of cups sold = $42 / $6
Number of cups sold = 7
Therefore, Akeem needs to sell 7 cups of lemonade to break even.