Question

How many computers must the AB Computer Company sell to break even? Let x be the number of computers.

Cost Function: C (x) = 145 + 1/4x
Revenue Function: R (x) = 1.5x

Answer 1

The Company AB must sell 116 computers to break even

Explanation:

we have

`R(x)=1.5x` -----> equation A

`C(x)=145+(1)/(4)x` ----> equation B

where

C is the cost function

R is the revenue function

x is the number of computers sold

we know that

Break even is when the cost is equal to the revenue

so

equate equation A and equation B

`1.5x=145+(1)/(4)x`

Solve for x

subtract 1/4x both sides

`1.5x-(1)/(4)x=145\\1.5x-0.25x=145\\1.25x=145`

Divide by 1.25 both sides

`x=116`

therefore

The Company AB must sell 116 computers to break even