Question

National Beef spends $3300 per day on business expenses plus $10.80 per

package of beef they make. They charge $18.50 for each package of beef they
produce. How many packages of beef do they need to sell in order to equal the cost
of making the packages?

Answer 1

National Beef needs to sell at least 429 packages of beef to cover their daily costs of $3300 plus $10.80 per package. They must account for the cost of production against the revenue from selling the beef at $18.50 per package.

Step-by-step explanation:

To find out how many packages of beef National Beef needs to sell to cover their costs, we need to set up an equation where the total cost is equal to the total revenue. Let's call the number of beef packages they need to sell x.

The total cost C for National Beef is given by the daily business expenses plus the cost per package times the number of packages: C = $3300 + $10.80x.

The total revenue R is the selling price per package times the number of packages: R = $18.50x.

To break even, these two amounts should be equal, so we set them equal to each other and solve for x:

$3300 + $10.80x = $18.50x

Subtract $10.80x from both sides to get:

$3300 = $7.70x

Then, divide both sides by $7.70 to find x:

x = $3300 / $7.70

Using a calculator, we find:

x ≈ 428.57

Since National Beef cannot sell a fraction of a package, they need to sell at least 429 packages to cover their costs.