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

Printable View

- May 16th 2008, 12:17 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, 12:33 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 $\displaystyle x$ = number of boxes of chocolates.

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

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

. . Total Cost: .$\displaystyle 8x + 3600$ dollars.

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

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