A group is planning a conference. The cost to rent the space is $1,000. Each attendee will be charged $50.00 to attend, but the group provides a lunch (the group will pay $10.00 for each lunch). What is the break-even point?
A) 20 attendees.
B) 25 attendees.
C) 30 attendees.
D) 35 attendees.
E) 40 attendees.

Question

Quizplus · Accepted Answer

The break-even point occurs when the total revenue equals the total costs. The cost to rent the space is $1,000, and each attendee costs an additional $10 for lunch. The revenue from each attendee is $50. Let $x$ be the number of attendees. The equation for break-even is $1000 + 10x = 50x$. Solving for $x$ gives $1000 = 40x$, so $x = 25$. Therefore, the break-even point is at 25 attendees.

A Group Is Planning a Conference