8
algebra

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

50 sales

D

55 sales

Correct Answer: C

Choice C is the correct answer. Let xx = number of sales.

Break-even: Revenue = Total Cost 90x=2000+50x90x = 2000 + 50x40x=200040x = 2000x=50x = 50

Solution: 50 sales

Verification: Revenue = 90(50)=450090(50) = 4500, Cost = 2000+50(50)=45002000 + 50(50) = 4500 ✓

💡 Strategic Tip: Break-even: Revenue = Fixed + Variable Costs.

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Linear Functions Set 59