Question

Question 12

1 pts
Whitney recently created a new smartphone app. As a result of the initial costs and
fees of producing the app, she did not make any money, or profit, selling the app during
the first two months of the app's release. For the first month, Whitney had a loss of
$324. During the second month of sales, she had a loss of $97. She hopes that in the
third month, she will sell enough apps to break even-that is, she hopes to earn enough
money to cover her losses. What is the amount of money Whitney needs to make in the
third month in order to break even with app sales so far?

Answer 1

The amount (revenue) she makes in the third month to break even is $97

Explanation:

The given parameters are;

The cost of the app = Initial cost + fees for producing the app

The amount she loss in the first month = Cost of the app - revenue = $324

The amount she loss in the second month = Loss from first month - revenue in second month = $324 - revenue in second month = $97

The amount Whitney has to make in the third month to break even is therefore;

The amount she makes in the third month to break even is given by the equation;

Revenue from third month - Loss from second month = 0

Which gives;

The amount she makes in the third month to break even is given by Revenue from third month - $97 = 0

∴ Revenue from third month = $97

The amount (revenue) she makes in the third month to break even = $97