Saturday, December 26, 2009

How would i write an equation to model the situation below and how would i figure out an answer:?

Suppose you spend $500.00 on an oven to bake bread. Each loaf of bread cost you$.20 to bake. You sell the loaves for $1.00 each. HOw many loaves of bread must you sell to break even?How would i write an equation to model the situation below and how would i figure out an answer:?
each loaf of bread is made and sold with a $.80 profit because $.20 are spent to make the bread and $1 is made in exchange so ( -$.20 + $1 = $.80 ) or ( $1 - $.20 = $.80 )


so to find out how many loaves it would take to break even you divide the cost of the oven by the amount of money made by each loaf so ( $500 / $.80 = 625 loaves )How would i write an equation to model the situation below and how would i figure out an answer:?
Ok...





So you make .80 on each loaf of bread, and you need to make $500, how many do you need make...





y will be the number of loaves that we need





So...





Y x (.8) = $500





So $500 / .8 = 625 loaves
Here's how you set up the model/eqn.





let x = # of loaves of bread needed to break even


Then cost = 500 + 0.2x


revenue = 1.00x





Break even =%26gt; cost = revenue


500 + 0.2x = 1.00x





Proceed to solve.
the profit from 1 loave = 1$ -.2$ =.8$





the price =500$





so you must sell 500/.8=625 loaves
Each bread will give profit =1-0.2 = 0.8 $





For break even you should be able to recover the money


500 / (1-0.2) = 500/0.8=625

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