Solve Problems Using Systems of Linear Equations
-Steve invests in a circus production. The cost includes an overhead of $\$ 117,000$, plus production costs of $\$ 7000$ per performance. A sold-out performance brings in $\$ 16,000$. Determine the dollar amount coming in and going out at the break-even point.
A) $\$ 208,000$
B) $\$ 91,000$
C) $\$ 13$
D) $\$ 81,391$

Question

Quizplus · Accepted Answer

At the break-even point, income equals expenses. The equation for expenses is $E = 117,000 + 7,000x$, and the equation for income is $I = 16,000x$, where $x$ is the number of performances. Setting $E = I$ gives $117,000 + 7,000x = 16,000x$, solving for $x$ gives $x = 13$. Substituting $x = 13$ into either equation, $E = 117,000 + 7,000(13) = 208,000$, which is the break-even dollar amount.

Solve Problems Using Systems of Linear Equations -Steve Invests in a Circus

Solve Problems Using Systems of Linear Equations
-Steve Invests in a Circus