Paul is opening a business selling pies. He estimates that each pie will cost him $4.00 to make. He also has monthly expenses of $1000 for the shop. He plans on charging $10 per pie. How many pies will he need to sell to break even? How many pies will he need to sell to make a profit of $500?

Answer:a)167 piesb) 217 piesStep-by-step explanation:Breakeven is the point at which cost and income are equalLet the number of pies be x. Cost of making x pies = 4xHe also has monthly expenses of $1000 for the shopTotal cost = 4x + 1000He plans on charging $10 per pieRevenue for x pies = 10xProfit = revenue for x pies- cost of making x piesTo break evencost of making x pies+ monthly expenses = revenue4x + 1000= 10x6x = 1000x = 166.7Approximately 167 piesTo make profit of $500Revenue at break even point = 167×10 = $1670Revenue + profit = 1670+500=$2170To get this new revenue at the price of $10 per pieNumber of pies to be sold = 2170/10= 217 piesHe needs to sell 217 pies to make $500 profit