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You decide to market your own custom computer software. You must invest $3,255 for computer hardware, and spend $2.90 to buy and package each disk. If each program sells for $13.75, how many copies must you sell to break even?

Verified Answer :

RhondaSommer

okay so if you sell each for 13.75 and you have to spend 2.90 on each one you are really only making a net profit of 10.85
your equation should look like this.
3,255/(13.75-2.90)=break even
break even would then be 300 disks

taskmasters

300 copies must be sold to break-even.

Given:
Fixed cost = 3,255
Variable cost = 2.90
Sales price = 13.75
Let x be the number of copies sold.

13.75x = 3,255 + 2.90x

13.75x - 2.90x = 3255
10.85x = 3255
10.85x/10.85 = 3255/10.85
x = 300

to check:
13.75(300) = 3255 + 2.90(300)
4125 = 3255 + 870
4125 = 4125

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