I need help.

Question

A person in that 18,375 to set up a small business of computer software that will sell $29.95. If each can be produced for $5.45 how many pieces must be sold to break even

Answer 1

The money invested by the person is 18375.

Let x be the number of units sold.

The Person sells the software at $29.95

Selling price for x number of units sold = 29.95x

The software is produced at $5.45

Produced price for x number of units sold = 5.45x

Break even analysis states is an analysis to determine the point at which revenue received equals the costs associated with receiving the revenue.

Using Break even analysis,

Total amount Invested = Selling Price for x number of products - Produced price for x number of units sold

18375 = 29.95x - 5.45x

Take out the common factor x.

18375 = x(29.95 - 5.45)

18375 = x(24.5)

Divide each side by 24.5

x = 18375/24.5

x = 750.

Therefore 750 pieces must be sold to break even.