The Chilliwack Volunteer Fire Department is selling cookbooks as a fundraiser. Each cookbook costs $3 to produce, and total fixed costs are $400. If the cookbooks sell for $8 each, how many have to be sold to break even?
A) 50
B) 75
C) 80
D) 100
E) 200

Question

Quizplus · Accepted Answer

To break even, the total revenue from selling the cookbooks needs to equal the total cost of producing them. Let x be the number of cookbooks sold. 
The total cost will be the fixed cost plus the variable cost, which is $3 per cookbook: 
Total cost = $400 + $3x 
The total revenue will be the selling price multiplied by the number of cookbooks sold: 
Total revenue = $8x 
To break even, these two equations must be equal: 
$400 + $3x = $8x 
Simplifying this equation: 
$400 = $5x 
x = 80 
Therefore, 80 cookbooks must be sold to break even.

The Chilliwack Volunteer Fire Department Is Selling Cookbooks as a Fundraiser