Question

Wayne the bake and shark specialist, sells each bake and shark sandwiches for $25. If his average variable cost is $15 and his total fixed cost is $2000 per month. How many bake and shark sandwiches must Wayne sell to generate $3000 in profit?

Answer 1

Wayne must sell

N = ($3000+$2000)/($25-$15) = 500

bake and shark sandwiches during one month to generate $3000 in profit.