I got this problem for school and I don't really know where to start... :-(


Suppose you are setting up for a small business and have invested $5000 to produce an item that will sell for $9. If each uniet can be produced for $7, how many units must you sell to break even?

There is not 3 variables here. Just one.

Let x=number of units produced.

You put up an initial 5000. Plus, it costs $7 to produce each.

Therefore, the cost is 5000+7x

But, you sell them for $9 each.

The gross is then 9x.

To break even they must be equal.

Set equal and solve for x.