A manufacturer produces mugs at a cost of $2 daily. The company also has daily costs of $500. It then sells the mugs for $5. What is the break-
even point? (The number of mugs it has to sell to
cover all daily costs)

It has to sell 100 mugs.

Remember that profit (P), Revenue (R), and cost (C) are related by the following formula:

The term break- even point occurs when the Revenue is equal to the Cost, making the profit to be equal zero. In other words:

A manufacturer produces mugs at a cost of $2 daily. The company also has daily costs of $500. So each day the cost for the company is:

So the number of mugs the company produces every day is:

We also know that the company sells the mugs for $5, so the revenue is:

Then by equating equations:

So the company has to sell 100 out of 250 mugs it produces daily in order to  cover all daily costs.

answer is 67%

step-by-step explanation:

were is the equation