At the beginning of January, Kesia Records paid $148,950 to acquire the exclusive rights to a new album. It costs them $1.13 to print a copy of this album, which they can sell for $9.75. The following chart shows the sales of that record, along with the overhead expenses of running a record studio, not counting production costs.MonthAlbums SoldExpensesJan.5,486$27,714Feb.8,191$21,689Mar.4,796$25,195Apr.7,490$28,766May6,272$24,604Jun.5,131$29,040In whch month did Kesia Records first break even?
Each album sold brings in $9.75 − $1.13 = $8.62 after printing costs. Subtracting each month’s overhead and tracking the cumulative amount against the $148,950 rights cost, Kesia is still $28,512.94 short at the end of April. May adds $29,460.64 after printing costs and overhead, bringing the cumulative amount to $947.70 above break-even. The first month is May.
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