Math Problem Statement
Suppose that a firm manufactures espresso machines. The firm's fixed cost is $1,063,201, and the variable cost is $98 per machine. If each machine sells for $388, how many espresso machines need to be sold to break even?
Round your answer to the nearest espresso machine (whole number).
Solution
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Math Problem Analysis
Mathematical Concepts
Break-even analysis
Linear equations
Cost-revenue relationships
Formulas
Break-even point = Fixed cost / (Selling price - Variable cost)
Theorems
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Suitable Grade Level
Grades 10-12 (High school business math or early college)
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