You decide to market your own custom computer software. You must invest $3,255 for computer hardware, and spend $2.90 to buy and package each disk. If each program sells for $13.75, how many copies must you sell to break even?

Okay so if you sell each for 13.75 and you have to spend 2.90 on each one you are really only making a net profit of 10.85

your equation should look like this.

3,255 / (13.75-2.90) = break even

break even would then be 300 disks

300 copies must be sold to break-even.

Given:

Fixed cost = 3,255

Variable cost = 2.90

Sales price = 13.75

Let x be the number of copies sold.

13.75x = 3,255 + 2.90x

13.75x - 2.90x = 3255

10.85x = 3255

10.85x/10.85 = 3255/10.85

x = 300

to check:

13.75 (300) = 3255 + 2.90 (300)

4125 = 3255 + 870

4125 = 4125