Word Problem

There's no "trick", it's just a matter of pulling out the pieces of information you need.

"Break even" means you make no profit, but you also have no losses.

So the total cost equals the total revenue.   (C=cost,  R=revenue)

The example breaks it down pretty well.

What are the things that make up the cost?  (fixed cost + variable cost)
 
What are the things that make up the revenue? (sales)

So, set those equal and solve for x which is the number of CDs manufactured and sold.


Can you be more specific in your question?  What part of the example you posted do you not understand?

What is consider the variable and why is it consider the variable in this specific equation?

X is the variable which represents the number of CDs manufactured and sold.

That number is the variable because that is what the question asks:
"How many CDs must be manufactured and sold for the company to break even?"

I don't understand how they put the final numbers together at the end of the equation. Is their another way of explaining this?

Thank You.