
so.. notice, if we distribute the denominator, we end up with 600/x + 2
now, notice the table, as more calendars are printed, the 600/x is shrinking
if you print 600 calendars, it becomes 1 and the costs ends as 3 bucks only
so, 600 is an overhead cost, a cost of capital goods, most likely machinery
so, the most likely is the computer and the printer
they spent $600 on the computer and printer, so when they start printing calendars, they're under water, indebted, but as more calendars get sold, the profit begins to offset that original cost