# Break even point

• May 16th 2008, 12:17 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, 12:33 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 \$\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\$