Candy bars are sold in a local store for 60 cents each. The factory has $1000 in fixed costs plus 10 cents of additional expense for each candy bar made. Assuming all candy bars manufactured can be sold, find the break-even point?

2 Answers
Binayaka C.
Jun 24, 2018

Produce of #2000# Candy bars is the break even point.

Explanation:

Break-even point is the number of units #N# produced and sold

which make zero profit.

Revenue earned , #R=P*N; P=$0.6# is unit price.

#P*N – (V * N + F) = 0 ; V=$0.1,F=$1000 ; V and F# are

additional cost per unit and fixed cost respectively.

#P*N – (V * N + F) = 0 or N(P-V)=F:. N= F/(P-V)#

So, break-even point is

#N = F/(P- V)= 1000/(0.6-0.1)=2000# Candy bars. [Ans]

Tony B
Jun 24, 2018

2000 bars at $1200

Explanation:

Total selling income = manufacturing cost

Before we begin; notice we have a mixture of units. Cents and dollars. Consequently we need to express these using just one unit of measurement. I choose dollars.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Let the count of bars be #n#

Total selling income #=nxx$0.60 -> $(0.60n)#

Production cost #=$1000+(nxx$0.10) -> $(0.1n+1000)#

Setting one against the other for break even point.

Dropping the dollar sign as we will just end up with a count (n)

#0.1n+1000=0.6n#

#0.6n-0.1n=1000#

#0.5n=1000#

#n=1000/0.5 = 2000#

#color(blue)("Check")#

#$0.6xx2000 = $1200#
#($0.1xx2000)+$1000 = $1200#

Tony B

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