You decide to market your own custom computer software. You must invest $3,255 for computer hardware, and spend $2.90 to buy and package each disk. If each program sells for $13.75, how many copies must you sell to break even?

Question

Mathematics

Izabelle Herman

2 June, 03:15

You decide to market your own custom computer software. You must invest $3,255 for computer hardware, and spend $2.90 to buy and package each disk. If each program sells for $13.75, how many copies must you sell to break even?

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Answers (2)

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Mariam · Answer 1

300 copies must be sold to break-even.

Given:

Fixed cost = 3,255

Variable cost = 2.90

Sales price = 13.75

Let x be the number of copies sold.

13.75x = 3,255 + 2.90x

13.75x - 2.90x = 3255

10.85x = 3255

10.85x/10.85 = 3255/10.85

x = 300

to check:

13.75 (300) = 3255 + 2.90 (300)

4125 = 3255 + 870

4125 = 4125

Cornelius Jarvis · Answer 2

Okay so if you sell each for 13.75 and you have to spend 2.90 on each one you are really only making a net profit of 10.85

your equation should look like this.

3,255 / (13.75-2.90) = break even

break even would then be 300 disks