Question

A company makes and sells charm bracelets. The cost of producing x bracelets is represented by the function C(x) = 180 + 8x. The revenue earned from selling x bracelets is represented by the function R(x) = 20x. Write and simplify a function P that represents the profit made from selling x bracelets. How many bracelets must the company sell to break even?

Answer 1

The correct answer would be, No of bracelets the company must sell to break even would be 15

Explanation:

Revenue is given by the function as:

R(x) = 20x

and Cost is given by the function as:

C(x) = 180 + 8x

Let the function P(x) represent the profit earned.

We know that Profit is equal to Revenue - Cost

i-e

Profit = Revenue - Cost

So,

P(x) = R(x) - C(x)

Now substituting the Revenue and cost values in the above equation.

P(x) = 20x - (180 + 8x)

P(x) = 20x -180 -8x

P(x) = 20x - 8x -180

P(x) = 12x - 180

Now if we want to find out the break even point, we would consider profit as Zero, 0. So substituting 0 in the above equation for Profit, we will get:

0 = 12x - 180

12x = 180

x = 180/12

x = 15

So the break even point will be 15 bracelets.