a company that manufactures small canoes has a fixed cost of $22,000. it costs $

Question

a company that manufactures small canoes has a fixed cost of $22,000. it costs $80 to produce each canoe. the selling price is $160 per canoe. (in solving this exercise, let x represent the number of canoes produced and sold)

a. write the cost function
C(x)= _____ (type an expression using x as the variable)

b. write the revenue function
R(x)=______ (type an expression using x as the variable)

c. determine the break even point
_____ (type an ordered pair, do not use commas in large numbers)

this means that when the company produces and sells the break even number of canoes
a. there is more money coming in than going out
b. the money coming in equals the money going out
c. there is less money coming in than going out.
d. there is not enough information

Explanation / Answer

C = 22000
Variable cost = 80x to prodice x canoes

SP = 160x ---> revenue made by selling x canoes for 160 apiece

So, C(x) = 80x + 22000

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R(x) = 160x dollars

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Break even pt :
This is where R = C

160x= 80x + 22000

80x = 22000

x = 275

When x = 275, R = C = 44000

(275 , 44000)

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b. the money coming in equals the money going out

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