Question

A musician is planning to market a CD. The fixed costs are $440 and the variable costs are $4 per CD. The wholesale price of the CD will be $8. 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?

Answer 1

8x - (440 + 4x) = 0
12x - 440 = 0
12x = 440
x = 36.7
so he must sell more than 37 to make a profit