Answer:
25 tickets
Step-by-step explanation:
Let x = the number of guests
The fixed expense is $125 for the rental.
The variable expense is the insurance, which is $3 per guest.
For x number of guests, the insurance cost is 3x.
The total expense is the fixed expense plus the variable expense, or
3x + 125
The money he receives is a variable amount depending on the number of guests. He charges $8 per guest, so, for x number of guests, he will receive 8x amount of money.
To break even, the revenue and the expenses must be equal. Now we set the amount he receives equal to the amount he spends, and we solve for x, the number of guests.
8x = 3x + 125
Subtract 3x from both sides.
5x = 125
Divide both sides by 5.
x = 25
Answer: 25 tickets
