Trent, a 10-year-old boy, wants to sell lemonade on a hot summer day. He hopes to make enough money to buy a new iPad. Joe, his older brother, tries to help him compute his prospect of doing so.

The following is the relevant information:

Variable costs

Lemonade .................. $0.30 per cup

Paper cups ................ $0.10 per cup

Fixed costs

Table and chair ........... $36.00

Price ...................... $1.00 per cup

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.

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.

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Units