Question

Phil started a taco stand. it cost him $500 to open the taco stand. He sells the tacos all at the same price. The taco stand Break Even $0 profit when he sells 200 tacos. Graph a line that represents the taco stands profit as a function of the number of tacos Phil...

Answer 1

We know that

• The opening cost is $500.

• The taco stand Break-Even $0 profit when he sells 200 tacos.

If Phil reaches Break-Even after selling 200 tacos that means these numbers of tacos are equivalent to $500. Let's divide to find the earning per taco.

`(500)/(200)=2.50`

Each taco costs $2.50.

The equation that represents this situation would be

`y=2.50x-500`

Notice that 2.50 is the constant ratio of change because that's the price per taco. Also, the independent term is -500 because Phil starts investing $500.

The graph below shows the line.

In the graph above you can observe that after selling 200 tacos, Phil will be in positive territory, that is, we will be getting profits.