The break-even point is the point at which income equals expenses. Ridgemont high school is paying $13,200 for the writing and research of their yearbook plus a printing fee of $25 per book. If they sell the books for $40 each, how many will they have to sell to break even? Explain.

Expert Answers

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They need to cover expense of $13200. If printing fee is $25 and they sell the books for $40 each, then that means when selling a book they cover expense of printing plus they earn $15 per book.

So if they earn $15 per book that means they have to sell `13200/15=880` books to break even.

If you want to solve this by using equation the this would look like this:

expenses: $13200 + $25`x` where `x` is number of books sold

earnings: $40`x`

Equation:

`13200+25x=40x`

`13200=15x`

`x=880`

Approved by eNotes Editorial Team