The naturally made bath and body store pays $550 a month for rent and utilities. the average cost for its products to be manufactured is about $3.00 an item. if the average price for a product sold in the store is $5.50, what will the break-even point be? let x represent the number of products sold. the break-even point occurs when the cost function equals the revenue function. 550 + 3.00x = 5.50x naturally made needs to sell products to break even. the cost or revenue when it sells the break-even number of products will be $ .

Using concepts of profit, revenue and cost, it is found that:

Profit is revenue subtracted by cost, that is:

The costs are the fee plus the cost per item, thus:

.

The revenue is the earnings per each item sold, thus:

The break-even point is when the profit is 0, that is:

Thus:

The break-even point is x = 200.

The cost or revenue are:

The cost or revenue when it sells the break-even number of products will be $1110.

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The break-even point will be when he sold 220 items.

The cost of revenue when it sells the break-even number of products is $1210

Step-by-step explanation:

Cost of rent and utilities :  $550

Average cost for 1 product to be manufactured : $3.00

Average price for a product sold in the store : $5.50

The break-even point occurs when the cost function equals the revenue function.

The equation for break even point (given):

where  Let x represent the number of products sold.

So, to calculate the break even point i.e. x

So, the break-even point will be when he sold 220 items.

The cost of revenue when it sells the break-even number of products:

Hence The cost of revenue when it sells the break-even number of products is $1210