Respuesta :
Answer:
The break- even point for the business is 110 number of constumes .
Step-by-step explanation:
Definition of break-even point
The break even point is the production unit where total revenues equals total expenses.
As given
A small costume business spends $550 for start-up costs and $15 per costume.
The business sells each costume for $20.
Let us assume that the number of costume be v .
Let us assume that the u represented the total cost of expense or income .
Equstion becomes
Total expense = Business start-up cost + Number of costumes × Price of per costumes .
u =550 + 15v
Total income = Number of costumes × Selling Price of per costumes .
u = 20v
Two equations becomes
u =550 + 15v
u = 20v
Compare above equations
20v = 550 + 15v
20v - 15v = 550
5v = 550
[tex]v = \frac{550}{5}[/tex]
v = 110
Therefore the break- even point for the business is 110 number of constumes .
