Expert: Josh - 5/11/2006

Question
Profit=sales-cost
sales=4x
cost=1.50x+1,475  1.50x=#of candles sold 1,475=mnthly bills
profit=2.50
would profit equal 2.50 I am not sure if this is correct or not. I also am tring to figure out how many candles 1.50x should be sold for the profit to be zero

Answer
Okay, we are told that
sales = 4x  and  cost = 1.5x+1475
Using the formula, i.e., substituting for the terms "sales" and "cost" in the equation "profit = sales-cost", we get
profit = 4x-(1.5x+1475)
       = 4x-1.5x-1475
       = 2.5x - 1475  ....call this [#1]

If the profit is zero (this is called the break-even point), we set [#1] equals to 0. The remaining task is to solve for "x", wherever it represents.

0=2.5x-1475, adding 1475 to both sides
1475=2.5x, which implies x=1475/2.5

If 1.5*x represents the number of candles sold, you can work it out once "x" is known.