Question

Steve wants to start his own T-shirt business. His initial costs to get the business going are $1,500. It also costs on average $3 per shirt. Steve charges $10 for each shirt he sells. Which of the following systems is correct for this model to find the break-even point if "x" = the number of shirts sold and "y" = the number of dollars of expense or income?

Answer 1

Below

Explanation:

To find the break-even point, we need to determine the point at which the total revenue equals the total cost. Let's call the number of shirts sold "x".

The total cost includes the initial costs of $1,500 and the cost per shirt of $3x, so the total cost is:

y = 1500 + 3x

The total revenue is the price per shirt of $10 multiplied by the number of shirts sold, so the total revenue is:

y = 10x

To find the break-even point, we need to set the total cost equal to the total revenue and solve for x:

1500 + 3x = 10x

Simplifying this equation, we get:

1500 = 7x

Dividing both sides by 7, we get:

x = 214.29

Therefore, Steve needs to sell 215 shirts to break even.So the correct system to find the break-even point is:

y = 1500 + 3x (total cost)

y = 10x (total revenue)