you decide to market your own custom computer software. You must invest $3255 for computer hardware, and spend $2.90 to buy and package each disk. If each program sells for $13.75, how many copies must you sell to break even?
To calculate the number of copies to sell in order to break even, we need to determine the total expenses and divide it by the selling price per copy.
First, let's calculate the total expenses:
Computer hardware cost: $3255
Cost of each disk (buying and packaging): $2.90
Total cost per copy = $3255 + $2.90 = $3257.90
Now, let's calculate the break-even point:
Selling price per copy: $13.75
Number of copies to sell for break-even = Total expenses / Selling price per copy
Number of copies to sell for break-even = $3257.90 / $13.75 = 237.06
Therefore, you would need to sell at least 238 copies (since you can't sell fractions of copies) to break even.
To determine the number of copies you need to sell to break even, you need to calculate the total cost and then divide it by the selling price.
1. Calculate the cost of computer hardware: $3255
2. Calculate the cost of buying and packaging each disk: $2.90
3. Calculate the total cost for one copy of the software:
Total cost = Cost of computer hardware + Cost of buying and packaging each disk
= $3255 + $2.90
4. Calculate the profit per copy:
Profit per copy = Selling price - Total cost
= $13.75 - (Cost of computer hardware + Cost of buying and packaging each disk)
5. Calculate the number of copies needed to break even:
Number of copies = Total cost / Profit per copy
Let's calculate the number of copies needed to break even:
Total cost = $3255 + $2.90 = $3257.90
Profit per copy = $13.75 - $3257.90
Number of copies = $3257.90 / $10.85
Now we can calculate the value:
Number of copies = 299.77
Since you can't sell a fraction of a copy, you would need to sell at least 300 copies to break even.