Let's call x to the bags of peanuts. One bag has a variable cost of $1.83, then the variable cost of x bags is 1.83x dollars.
The total cost of production for the corporation is obtained by adding fixed and variable costs. In this case, the total cost is 18,200 + 1.83x dollars.
The revenue for the corporation of 1 bag is $3.43, then of x bags is 3.43x dollars.
When the revenue and the total cost are equal, the breakeven point is reached, in this case:
18,200 + 1.83x = 3.43x
18,200 = 3.43x - 1.83x
18,200 = 1.6x
18,200/1.6 = x
11375 = x
The cost of production of 11375 bags is:
Total Cost = 18,200 + 1.83*11375
Total Cost = 18,200 + 20816.25
Total Cost = 39016.25
Pete’s breakeven point is (11375, 39016.25), or, 11375 bags and $39,016.25