Question

Juice boxes are sold in a local store for 65 cents each. The factory has $1400 in fixed costs plus 15 cents of additional expense for each juice box made. Assuming all juice boxes manufactured can be sold, find the break-even point.

Answer 1

Production of 2800 juice boxes is the break even point.

Explanation:

Break-even point is the point where profit is zero and number of manufactured goods are all sold

Let number of juice boxes be y

charges of local store for 1 juice box= $0.65

charges of local store for y juice box=$0.65y

Factory cost of y juices boxes= $1400 + $0.15y

Assuming all juice boxes manufactured can be sold, to find the break-even point

charges of local store for y juice box= Factory cost of y juices boxes

$0.65y=$1400 + $0.15y

$0.65y-$0.15y= $1400

$0.50y=$1400

y= 1400/0.5

y=2800

hence production of 2800 juice boxes is the break even point!