Question

A company sells widgets. The company’s fixed and variable cost are modeled by the function C(x)=0.92x+85000. It’s revenue is modeled by the function R(x)=5.6x.

How many widgets does the company have to sell to break even? Round your answer to the nearest whole number, if needed.

Answer 1

18162 widgets

Explanation:

Given

`C(x)=0.92x+85000`

`R(x)=5.6x.`

Required

Determine the price at break even point

At breakeven point, the following relationship exists

`Rx = C(x)`

Substitute values for R(x) and C(x)

`5.6x = 0.92x +85000`

Collect Like Terms

`5.6x - 0.92x =85000`

`4.68x =85000`

Make x the subject

`x = (85000)/(4.68)`

`x = 18162.3931624`

`x = 18162` --- Approximated