Rhianna is in charge of a facility which produces and sells roast coffee. her expense sheet can be seen below.

itemcostrent$23,280/mo. salaries$45,860/wk. raw coffee$0.51/lb. insurance$19,750/mo. advertising$22,110/mo. coffee roasting$0.32/lb
rhianna’s coffee sells for $2.89 per pound. how much coffee must her facility sell each month to break even, to the nearest hundred pounds?

We are given:

Item Cost Rent: $23,280 per month
Salaries $45,860 per week
Raw Coffee = $0.51/lb
Insurance = $19,750 per month
Advertising = $22,110 per month
Coffee Roasting = $0.32/lb

Coffee Price = $2.89/lb

To break-even:

Add all monthly expenses:

Fixed Cost = $23,280 + $45,860/week * 4 weeks/mo + $19,750 + $22,110
Fixed Cost = $248,340

let x = pounds of coffee to sell to reach breakeven

set up an equation to solve for x:

($0.51+$0.32)/lb * x + $248,340 = $2.89x

Solve for x, that will be the number of pounds of coffee that should be sold to reach break-even point.