'person buys 100 units when price was at 3000 then buys 100 again when the price drops to 1000 how much would the price need to climb for them to break even?' i read 50 different explanations and i still can't wrap my head around the answer - ThreadSky

behemuffin.bsky.social • 32 days ago

'person buys 100 units when price was at 3000
then buys 100 again when the price drops to 1000
how much would the price need to climb for them to break even?'

i read 50 different explanations and i still can't wrap my head around the answer

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seth65.bsky.social•31 days ago

So they bought 200 units for a total of 400,000.

To break even, each unit would need to cost 2000 (400,000 divided by 200)

seth65.bsky.social•31 days ago

Put another way, you need to sell them for the same price, so 100 at 3k, which is a total cost of 300k, and another 100 at 1k, or 100k. So in total you need to make back 400k, which leads to the same result.

behemuffin.bsky.social•31 days ago

but the answer was 1500, and thats whats blowing my MIND AND THERE WERE 50 PEOPLE EXPLAINIGN WHY AND I CANT I JUST CANNOT I DO NOT HAVE THE ABILTIY TO CANNNNNNNNNNN

seth65.bsky.social•31 days ago

I'm with you man, that doesn't make sense. That'd only make 300k, which would only pay for the first.

And if it was by how much it raised, that'd be 2500 per unit, which is 500k total sold, which again is more than you had spent.

imaginarydragon.bsky.social•32 days ago

you only need to consider the price of 1 single unit. The cost of buying 2 unit then becomes 4k, which means they have to sell at 2k per unit to break even.

Extend that to 100 x 3k + 100 x 1k. Since the cost then becomes 200 unit for 400k, divide 400k by 200 you still get 2k per unit

behemuffin.bsky.social•31 days ago

yes, but, the answer to the math was 1500 and not 2000, and i'm like WHAT WHY WTF and there were over 50 posts explaining it like 33% or someshing and i just couldn't wrap my head around it

WAS I BEING GASLIT?!

imaginarydragon.bsky.social•31 days ago

Think, since you're getting 200 of these @ 3K each, then another 200 @ 1K each, then for every 1 of the 3K, you're also getting 1 for 1K. Then the average purchase cost is 2K. It's impossible to 1.5K per unit and break even.

behemuffin.bsky.social•31 days ago

see THAT makes sense to me, ugh, i wish i could find the post wegh

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