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Mathematics, 30.08.2019 13:30 tishfaco5000
Scenario: suppose your business makes high-grade pdas, personal digital assistants. it costs you $80,000 a month for fixed costs, such as rent, employee salaries, and other essential items. also, it costs $300 to make each pda, called a unit. if you are able to sell each unit for $500, how many pdas do you need to sell to break even?
step 1: set up the variables.
let x = the number of units
y = the cost/income (expense/revenue) in dollars
step 2: write cost (expense) and income (revenue) equations.
cost equation:
total cost = fixed cost + (cost to make each unit) · (# of units)
y =
income equation:
total income =
y =
step 3: solve the system of equations using substitution.
step 4: state the break-even point.
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