Akeem wants to have a lemonade stand at the community fair. It costs him $2 to make each cup of lemonade plus a $40 renter's fee for the stand. He sells the lemonade for $6 per cup. How many cups does Akeem have to sell to break even?
_ cups
To break even, Akeem's total costs and total revenue need to be equal.
His total costs per cup of lemonade are $2 (cost to make each cup) + $40 (renter's fee for the stand) = $42.
His total revenue per cup of lemonade is $6 (selling price per cup).
Let's assume Akeem needs to sell x cups of lemonade to break even.
Therefore, his total revenue would be x cups of lemonade * $6 = $6x.
Since his total costs and total revenue need to be equal, $6x = $42.
To find x, we need to divide both sides of the equation by $6.
x = $42/$6 = 7.
So, Akeem needs to sell 7 cups of lemonade to break even.
To determine how many cups Akeem needs to sell to break even, we need to calculate the total cost and the total revenue.
1. First, let's calculate the total cost:
- Cost per cup = $2
- Renter's fee for the stand = $40
The total cost is given by multiplying the cost per cup by the number of cups plus the renter's fee:
Total Cost = (Cost per cup * Number of cups) + Renter's fee
2. Now let's calculate the total revenue:
- Selling price per cup = $6
- Number of cups sold = Unknown (let's assume it as x)
The total revenue is given by multiplying the selling price per cup by the number of cups sold:
Total Revenue = Selling price per cup * Number of cups sold
3. The break-even point is reached when the total cost equals the total revenue. Therefore, we can set up the equation:
Total Cost = Total Revenue
Substituting the formulas for total cost and total revenue, we get:
(Cost per cup * Number of cups) + Renter's fee = Selling price per cup * Number of cups sold
Now, let's plug in the given values:
($2 * x) + $40 = $6 * x
To solve for x, we'll isolate it on one side of the equation:
$2x + $40 = $6x
$40 = $4x
Dividing both sides by $4:
$40/$4 = $4x/$4
10 = x
Therefore, Akeem needs to sell 10 cups to break even.
Number of cups Akeem has to sell to break even: 10 cups
To determine how many cups of lemonade Akeem needs to sell to break even, we need to calculate his total costs and compare it to his total revenue.
First, let's calculate the total cost of making the lemonade. Akeem spends $2 on ingredients for each cup, so his cost per cup is $2.
Next, we need to determine his fixed costs, which include the $40 renter's fee for the stand.
To calculate the total cost of making a cup of lemonade, we add the variable cost (ingredient cost) and the fixed cost:
Total Cost = Variable Cost + Fixed Cost
Total Cost = $2 + $40 = $42
Now, we need to calculate Akeem's revenue. He sells each cup of lemonade for $6.
To determine the number of cups Akeem needs to sell to break even, we divide the total cost by the revenue per cup:
Number of Cups = Total Cost / Revenue per Cup
Number of Cups = $42 / $6
Number of Cups = 7
Therefore, Akeem needs to sell 7 cups of lemonade to break even.