Question

The figure on the right shows the graphs of the cost and revenue functions for a company that manufactures and sells small radios. How

many radios must be produced and sold for the company to break even?
The number of radios that must be produced and sold in order to break even is ____ radios.

Answer 1

The number of radios that must be produced and sold in order to break even is 750 radios.

How to solve revenue and cost function?

The revenue function on the graph is given as:

R(x) = 48x

The cost function is given as:

C(x) = 24750 + 15x

The company will break even when total revenue is equal to the total cost.

This implies that,

48x = 24750 + 15x

33x = 24750

x = 24750/33

x = 750