Question

mrs. merton has decided to set up a pie making business. to set herself up in business she must purchase equipment totalling $200, plus each pie that she makes costs her 25 cents. she is planning to sell her pies for $1.50 each. if $x$ denotes the number of pies that are made, what is the total revenue at breakeven? provide your answer below:

Explanation:

Step1: Set up cost - revenue equations

Cost $C = 200+0.25x$, Revenue $R = 1.5x$.

Step2: Find break - even point

At break - even, $C = R$. So $200 + 0.25x=1.5x$.

Step3: Solve for $x$

Subtract $0.25x$ from both sides: $200=1.5x - 0.25x$, $200 = 1.25x$. Then $x=\frac{200}{1.25}=160$.

Step4: Calculate total revenue at break - even

Substitute $x = 160$ into revenue formula $R = 1.5x$. So $R=1.5\times160 = 240$.

Answer:

$240$