A musician is planning to market a CD. The fixed costs are $850 and the variable costs are $4 per CD. The wholesale price of the CD will be $9. 4. For the artist to make a profit, revenues must be greater than costs.
How many CDs, x, must be sold for the musician to make a profit?

Question

anonymous · Answer

profit = income - cost
profit =  9.4 n   - (4 n + 850) where n is the number of CDs sold.
In the profit equation set the profit to zero, break even point, and solve for n.
0        = 9.4 n   - (4 n + 850)
n = 157.4
157.4 is the math answer.  158 will produce a small profit, 157 a small loss.