# A real world example of where a buisness would require a break-even or equilibrium point

Linear equations and linear inequalities are very predominant in business, such as finding break-even and equilibrium points.

I need a real-world example of where a business would have a need to find a break-even or equilibrium point. Then discuss the differences if the information was given as an inequality versus an equation.

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#### Solution Preview

The following is a real world example of where a buisness would require a break-even orequilibrium point:

As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected:

Monthly fixed cost (loan payment, taxes, insurance, maintenance) $6000

Variable cost per occupied room per night $ 20

Revenue per occupied room per night $ 75

a. If there are 12 guest rooms ...

#### Solution Summary

A real world example of where a buisness would require a break-even or equilibrium point is revealed.