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Unit cost in dollars to produce tubs of ice-cream is $16 and fixed cost is $16320. Revenue fuction in dollars is R(x) = -2x^2+438x. What is the quantity for break-even point

User Milica
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1 Answer

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Answer:

To find the quantity for the break-even point, we need to determine the value of x at which the revenue equals the total cost.

Explanation:

The total cost consists of two components: the fixed cost and the variable cost. The variable cost is calculated by multiplying the unit cost by the quantity produced.

Given that the unit cost is $16 and the fixed cost is $16320, the total cost can be expressed as:

Total Cost = Fixed Cost + (Unit Cost * Quantity)

Total Cost = 16320 + (16 * Quantity)

The revenue function is given by R(x) = -2x^2 + 438x, where x represents the quantity of ice cream tubs produced.

To find the break-even point, we set the revenue equal to the total cost:

R(x) = Total Cost

-2x^2 + 438x = 16320 + (16 * Quantity)

Now, we need to solve this equation to find the value of x.

-2x^2 + 438x - 16x - 16320 = 0

-2x^2 + 422x - 16320 = 0

Next, we can solve this quadratic equation using factoring, completing the square, or the quadratic formula. Once we find the values of x that satisfy the equation, we can determine the quantity for the break-even point.

User Maxmantz
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