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Math Help - Break even point and profit

  1. #1
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    Break even point and profit

    Ingrid processes and bottles jam in her home based business. Her fixedcosts are $250 per month and the variable cost per jar is $1.20. She sells the jam to local grocery stores for $3.20 each

    a) how many jars must she sell per year to break even?

    b) what will be her profit if she sells 3000 jars in a year?
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  2. #2
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    Quote Originally Posted by diehardmath4 View Post
    Ingrid processes and bottles jam in her home based business. Her fixedcosts are $250 per month and the variable cost per jar is $1.20. She sells the jam to local grocery stores for $3.20 each

    a) how many jars must she sell per year to break even?

    b) what will be her profit if she sells 3000 jars in a year?
    This problem is similar to the one here: http://www.mathhelpforum.com/math-he...nt-urgent.html

    For (a)

    The fixed cost is 250. The variable cost is 1.2x, where x is the quantity of the good. Since the price is 3.2, the total revenue will be 3.2x.

    Break even point: Where total revenue = total cost

    i.e. where 3.2x = 250 + 1.2x

    (solve for x)

    For (b)

    Profit = Total revenue - Total cost...

    Profit = 3.2x - (250 + 1.2x)

    let x=3000...and what do you get?
    Last edited by mr fantastic; June 20th 2009 at 05:58 PM. Reason: Post moved from original thread, link added
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  3. #3
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    bear with me I"m still learning break even point analysis
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