Question

If C(x) = 2.5x + 35 is the cost function and R(x) = 3.2x is the revenue function, then what is the profit function, P(x), and what is the breakeven point?

Answer 1

This is a simple question to solve.

First we have that the profit function P(x) = R(x) - C(x) so we can calculate:

Ad that is our profit function.

Now, to the break-even point happens when our revenue is equal to our cost, it means, when the profit function P(x)=0. Once we know that we can calculate the value of x for P(x)=0, and that will be our break even point:

So, our break-even point is 50.