Question

Burnem Inc. manufactures thumb drives and sells them to a distributor. Burnem's total cost and total revenue (in dollars) for x thumb drives are given by the following equations. Total cost = 4x + 4884 and Total revenue = 15x How many thumb drives must Burnem sell to break even?

Answer 1

444 thumb drives

Explanation:

Break even is the point at which the proceeds are equal to the costs i.e. when Total cost = Total revenue. So using the equations provided, the breakeven point for Burnem Inc. will be 4x + 4884 = 15x, where x is number of thumb drives. We solve for x to get the answer:

4x + 4884 = 15x

4884 = 15x - 4x

4884 = 11x

x = 4884/11

x = 444 thumb drives