Question

You are staring a business that sells air filters for homes. Your startup costs for the business are $1250 and each air filter kit costs $40. If you sell the filters for $60, how many must you sell to break even?

Answer 1

63 Filters.

Explanation:

To find the break even value, we need to use the formula cost = revenue.

Lets first define the different values.

Let x be the number of filters sold.

c = 1250 + 40x

r = 60x

Now we can use the formula to find the amount of filters that need to be sold.

1250 + 40x = 60x

From here we need to combine like terms like so:

1250 = 60x - 40x

1250 = 20x

Now we divide both sides by 20 to find the value of x.

`(1250)/(20) = (20x)/(20)`

x = 62.5

However, in this case we cannot sell half a filter. So we need to round it up.

x = 63

63 Filters needs to be sold to break even.