Question

A pastry chef wants to bake and sells fries. Before they start production, they need to make sure they can make a profit with the materials and labor force they have. Their accountant has given them a cost equation of y=0.65x+1410 and a revenue equation of y=0.8x. How many pies will they need to sell in order to reach the break order point?

Answer 1

They need to sell 9400 pies to reach the break-order point

Explanation:

* Lets explain the break-order point

- The break-order point is the point at which total cost and total

revenue are equal

∴ The total cost = The total revenue

* Lets solve the problem

∵ The equation of the total cost is y = 0.65x + 1410

∵ The revenue equation is y = 0.8x

- To find the break-order point equate the two equations

∴ 0.65x + 1410 = 0.8x

- Subtract 0.65x from both sides

∴ 1410 = 0.8x - 0.65x

∴ 0.15x = 1410

- Divide both sides by 0.15

∴ x = 1410/0.15 = 9400

∵ x is the number of pies

* They need to sell 9400 pies to reach the break-order point