Question

Winston owns a coffee cart. He charges $3.50 for a cup of coffee, and it costs him $1.50 to make a cup of coffee. It also costs him $100 a day for other expenses. which equation can be used to determine how many cups of coffee does he need to sell each day to break even.?

Answer 1

Formula

Profit = (selling price/cup - cost of making 1 cup)*number of cups - Cost of doing business.

Profit = (3.50 - 1.50)x - 100

Solve

Profit = 2x - 100

Now you need to make the profit = 0. That's your break even point.

0 = 2x - 100         Add 100 to both sides

100 = 2x               Divide by 2

100/2 = x

x =  50

He has to sell 50 cups of coffee to break even.