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

You break even if you spend exactly as much as you gain. In other words, if the cost and the revenue are the same:

`C(x)=R(x) \iff 145+0.25x=1.5x`

Subtract 0.25 from both sides:

`145=1.25x`

Divide both sides by 1.25:

`x=(145)/(1.25)=116`

So, they must sell 116 computers to break even. If they sell less, they'll lose money. If they sell more, they'll start making profit.