Answer:
340 CDs
Explanation:
To answer this question, we're dealing with three functions for one problem, namely the revenue function, the cost function, and the profit function.
The revenue function is R(q) = pq, where p is the price of a certain good and q is the quantity sold.
The cost function is C(q) = variable cost + fixed cost, where variable costs changes depending on the quantity of goods produced and fixed cost is a one-time cost for the producer (e.g., an investment, rent, etc.).
The profit function is P(q) = R(q) - C(q) and is simply the cost function subtracted from the revenue function.
The "break-even point" is the point at which profit = $0 and the point at which cost = revenue.
From the problem, we see that Jason invested $3349 (once) for his CDs and each disk requires $3.65 for the materials so our cost function is C(q) = 3.65q + 3349
Furthermore, we see that each disks sells for $13.50, so our revenue function is R(q) = 13.5q
Our profit function then is P(q) = 13.5q - (3.65q + 3349) = 13.5q - 3.65q - 3349 = 9.85q - 3349.
Thus, to find the break-even point, we set profit = 0 and solve for q:
