A small business produces soap and lotion gift baskets. Labor, utilities, and other fixed expenses
cost $6,000 a month. Each basket costs $8 to produce and sells for $20. How many baskets does
the company need to sell each month to break even?
•
●
Define n to be the number of gift baskets the company sells in a month
Cost Equation: C(n)= 6000 + 8n
● Revenue Equation: R(n) = 20n
Cost
$
12000
11000-
10000+
9000
8000
7000-
6000
5000
4000+
3000
2000
1000-
C(n)
R(n)
100 200 300
400 500 600 700 800
TE
