# Break even point

• May 16th 2008, 01:17 PM
Greenbaumenom
Break 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.

• May 16th 2008, 01:33 PM
Soroban
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 $x$ = number of boxes of chocolates.

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

The production cost per box is \$8: . $8x$ dollars, plus a fixed cost of $\3600.$
. . Total Cost: . $8x + 3600$ dollars.

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

. . Solve: . $14x \:=\:8x + 3600$