A Chocolate Factory sells a box of choclate for $14 each. The total cost consists of a fixed overhead of $3600 per month plus production costs of $8 per chocolate box. Find the break even point.

Please help. Thanks

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- May 16th 2008, 01:17 PMGreenbaumenomBreak even point
A Chocolate Factory sells a box of choclate for $14 each. The total cost consists of a fixed overhead of $3600 per month plus production costs of $8 per chocolate box. Find the break even point.

Please help. Thanks - May 16th 2008, 01:33 PMSoroban
Hello, Greenbaumenom!

This is not an Advanced Probability and Statistics problem.

. . It more like Algebra 1.

Quote:

A chocolate factory sells a box of chocolates for $14 each.

The total cost is a fixed overhead of $3600 per month plus production costs of $8 per box.

Find the break-even point.

Let = number of boxes of chocolates.

At $14 per box, Total Revenue: . dollars.

The production cost per box is $8: . dollars, plus a fixed cost of

. . Total Cost: . dollars.

The break-even point occurs when Total Revenue equals Total Cost.

. . Solve: .