PLEASE HELP!!!!!!!! If the company expects to sell 800 widgets this month, what price must they sell them for to break even.

Question

asked Sep 19, 2020 8.5k views

1 Answer

Andrey Maslov · Answer 1 · 2020-09-26T06:50:14+0000

Solving for c:

Start with

P=cw-(1500+2w)

add 1500+2w to both sides:

P+1500+2w=cw

Divide both sides by w:

(P+1500+2w)/(w)=c

Prize to break even:

If they break even, the profit is zero, and since we know that w=800, the cost is

$(P+1500+2w)/(w)=c \implies c=(0+1500+2\cdot 800)/(800)=(3100)/(800)=(31)/(8)$