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Break-Even Point - Math Models

by Steve Aoki
(Beverly Hills, CA)










































determine the exact break-even point algebraically.if your algebraic solution does not approximate your answer from the graph in part d, explain why.

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Mar 30, 2012
Break-Even Point
by: Staff



Answer:

Hi Steve,

We need all of the information in the question (including the graph in part d) to answer your question.

Just submit the additional information as a comment.

Thanks.




Thanks for writing.

Staff
www.solving-math-problems.com



Sep 30, 2012
Break even point
by: Anonymous

If a tee shirt company sells shirts for 5.50, the license to sell the shirts is 12, and they plan to sell the shirts for 8, how would you write those equations out?

Oct 01, 2012
Break-Even Point
by: Staff


Answer to Break Even


The "break-even" point is that point at which total revenue is equal to total cost.


The equation is:

(Sale Price per unit * units sold) = (Variable Cost per unit * units sold) + Fixed Costs



However, since you did not include any cost information, I’m not quite sure what your question is.



If you are asking what the sales price per shirt must be when the revenue from selling 12 shirts for $5.50 is equal to the revenue from selling 8 shirts at a new price, the equation is:

(New price per shirt * 8 units sold) = ($5.50 per shirt * 12 units sold)

(P * 8) = (5.50 * 12)

(P * 8) / 8 = (5.50 * 12) / 8

P * (8 / 8) = (5.50 * 12) / 8

P * (1) = (5.50 * 12) / 8

P = (5.50 * 12) / 8

P = $8.25


When 8 shirts are sold for $8.25 per shirt, the sales revenue will be exactly the same as selling 12 shirts for $5.50 per shirt.

In both cases the sales revenue will be $66.


Thanks for writing.

Staff
www.solving-math-problems.com



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