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Answer: CSet 17: Systems of Equations
Explanation
A startup has fixed costs of $2,000/month and variable costs of $50 per sale. Revenue is $90 per sale. How many sales are needed monthly to break even?
A.
40 sales
B.
45 sales
C.✓ Correct
50 sales
D.
55 sales
Detailed Explanation
Choice C is correct. Choice C is the correct answer. Let = number of sales. Break-even: Revenue = Total Cost $$$90x = 2000 + 50 x40x = 2000$x = 50 Solution: 50 sales Verification: Revenue = , Cost = ✓ Strategic Tip: Break-even: Revenue = Fixed + Variable Costs.
Key Steps:
•
The correct answer is 50 sales
Why others are wrong:
A: Choice A is incorrect and may result from a calculation error.
B: Choice B is incorrect and may result from a calculation error.
D: Choice D is incorrect and may result from a calculation error.
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