Jimmy, a 10-year-old boy, wants to sell lemonade on a hot summer day. He hopes to make

Question:

Jimmy, a 10-year-old boy, wants to sell lemonade on a hot summer day. He hopes to make enough money to buy a new iPod. Sam, his elder brother, tries to help him compute his prospect of doing so. The following is the relevant information:

Variable costs Lemonade $0.30 per cup $0.10 per cup Paper cups Fixed costs Table and chair $36.00 $1.00 per cup Price

The following graph depicts the dollar amount of cost or revenue on the vertical axis and the number of lemonade cups sold on the horizontal axis.

Jimmy, a 10-year-old boy, wants to sell lemonade on a

Required
a. Draw a line that depicts the total cost.
b. Draw a line that depicts the total revenue.
c. Identify the break-even point.
d. Identify the area representing profit.
e. Identify the area representing loss.