Question

3. Problem 2: Suppose a radio manufacturer has the total cost function C (x) = 43x + $ 1850 and the revenue function R (x) = $ 80x. Where "x" is the number of radios manufactured and sold. Find:

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Answer 1

Given that,

Total cost function, C (x) = 43x + $1850

The revenue function R (x) = $80x

To find,

The number of units that must be produced and sold to break even.

Solution,

At break even, cost = revenue

43x + $1850 = $80x

Subtract 80x from both sides.

43x + 1850 -80x = $80x -80x

1850 = 80x-43x

37x = 1850

x = 50

So, the required number of units are 50.