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Katherine D’Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid to the university for the right to sell these programs. If Katherine was able to sell programs for $5 each, how many would she have to sell in order to break even?

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Answer:

700 programs

Step-by-step explanation:

Given that :

Fixed cost = $400

Variable cost = $3 per program

Right to sell fee = $1000

Sales price per program = $5

Let number of programs sold = x

In other to break even, expense = revenue

(Fixed cost + variable cost per program + right to sell fee) = sales price per program

(400 + 3x + 1000) = 5x

1400 + 3x = 5x

1400 = 5x - 3x

1400 = 2x

1400 / 2 = x

x = 700

Number of programs to be sold in other to break even = 700

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