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12 November, 17:27

Suppose you are starting an office-cleaning service you have spent $315 on equipment to clean each office, you use $4 worth of supplies you charge $25 per office how many offices must you clean to break even

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  1. 12 November, 19:27
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    15 offices should be cleaned to break even.

    Break even is when your revenue is equal to your expenses resulting to zero profit.

    Let x be the number of cleaned offices.

    Revenue = 25x

    Expenses = Fixed Expense + Variable Expense = 315 + 4x

    25x = 315 + 4x

    25x - 4x = 315

    21x = 315

    21x / 21 = 315 / 21

    x = 15 offices.

    To check:

    25 (15) = 315 + 4 (15)

    375 = 315 + 60

    375 = 375

    Profit = Revenue - Expenses

    Profit = 12x - (315 + 4x)

    Profit = 12 (15) - 315 - 4 (15)

    Profit = 375 - 375

    Profit = 0
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