Word Problem: find break-even point for production of candy

[sdgreen]

Candy bars are sold in a local store for 50 cents each. The factory has $1000 in fixed costs plus 10 cents of addtional expense for each candy bar made. Assuming all candy bars manufactured can be sold, find the break-even point.

 

[stapel]

What is the cost for producing one bar? What is the revenue from selling one bar?

What is the cost for producing two bars? What is the revenue from selling two bars?

What is the cost for producing three bars? What is the revenue from selling three bars?

Keep going until you see a pattern. Then write expressions for the cost and revenue generated by "x" bars.

Use these expressions to create the "break-even" equation. Solve for the value of x.

Eliz.