# Candy bars are sold in a local store for 60 cents each. The factory has $1000 in fixed costs plus 10 cents of additional expense for each candy bar made. Assuming all candy bars manufactured can be sold, find the break-even point? ##### 2 Answers Jun 24, 2018 #### Answer: Produce of $2000$Candy bars is the break even point. #### Explanation: Break-even point is the number of units $N$produced and sold which make zero profit. Revenue earned , R=P*N; P=$0.6 is unit price.

P*N – (V * N + F) = 0 ; V=$0.1,F=$1000 ; V and F are

additional cost per unit and fixed cost respectively.

P*N – (V * N + F) = 0 or N(P-V)=F:. N= F/(P-V)

So, break-even point is

$N = \frac{F}{P - V} = \frac{1000}{0.6 - 0.1} = 2000$ Candy bars. [Ans]

Jun 24, 2018

2000 bars at $1200 #### Explanation: Total selling income = manufacturing cost Before we begin; notice we have a mixture of units. Cents and dollars. Consequently we need to express these using just one unit of measurement. I choose dollars. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Let the count of bars be $n$Total selling income =nxx$0.60 -> $(0.60n) Production cost =$1000+(nxx$0.10) ->$(0.1n+1000)

Setting one against the other for break even point.

Dropping the dollar sign as we will just end up with a count (n)

$0.1 n + 1000 = 0.6 n$

$0.6 n - 0.1 n = 1000$

$0.5 n = 1000$

$n = \frac{1000}{0.5} = 2000$

$\textcolor{b l u e}{\text{Check}}$

$0.6xx2000 =$1200
($0.1xx2000)+$1000 = \$1200