Question

sale price per item is $15, cost of producing item is $55 and labor per item is $4. What is the equation to determine revenue, total cost and how many items must be sold to break even?

Answer 1

Mollyann, I am mathematically illiterate....please explain in detail?

Answer 2

The cost of production isn't per-item, is it?

Answer 3

yes it is.

Answer 4

If it costs 55$ to produce and sells for 15$ then it is impossible to make a profit. This is a losing proposition.

Answer 5

I'm going to continue with the assumption that the 55$ is a one-time cost - otherwise, no business would actually do this...

Anyway, the basic equations are:
Revenue = Price × number of items
Profit = Revenue - Total Cost
Total Cost = one-time (I hope) Production Cost + Labor Cost
Break-Even is when Profit = 0 or Revenue = Total Cost

Answer 6

If you let x = number of items sold, then
Total Cost = 55+4x, and Revenue = 15x

Can you figure it out from here?

Answer 7

No, as I am mathematically illiterate when it comes to algebra. I need all of the help that I can get when it comes to college algebra.

Answer 8

Hmm, well there isn't much algebra to do here. It is more a matter of writing the expressions correctly. You'll have to solve a simple equation for the finding the break-even point, but not much else.

Answer 9

Since break-even occurs when Total Cost = Revenue, and
Total Cost = 55+4x, and
Revenue = 15x

Your equation to solve is 55+4x=15x.
Can you handle that?

Answer 10

Got it, thanks Cliff, you have been the greatest help!!!!

Answer 11

If you can find it in a library or book store, I recommend the book, Forgotten Algebra; it covers a lot of stuff like this.