The cost and revenue functions for producing and selling x units of a product ar

ID: 3029468 • Letter: T

Question

The cost and revenue functions for producing and selling x units of a product are given. Cost and revenue are expressed in dollars.

C(x)=55x+75000

R(x)=205x

a. Find the number of units that must be produced and sold to break even. At this level, what is the dollar amount coming in and going out?

What is the number of units that must be sold to break even? _____ units

What is the dollar amount coming in and going out? $_______

b. Write the profit function from producing and selling x units of the product.

P(x) = (Simplify your answer)

What is the number of units that must be sold to break even? _____ units

Equation Method

Break Even Points: R(X)= C(X)

205X= 55 x +75000

205 x-55X=75000

150x=75000

X=75000/150

X=500

What is the dollar amount coming in and going out? $_______

dollar amount coming in= 205x500=102,500

dollar amount coming out=55 x500 + 75000=27,500+75,000=102,500

Profit Function: P(X)= R(X) –C(X)

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