Question

Suppose a company has fixed costs of $40,800 and variable cost per unit of 4/9x + 444 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 1678 − 5/9x dollars per unit.

Find the break-even points. (Enter your answers as a comma-separated list.)

Answer 1

To find the break-even points, set the total revenue equal to the total cost and solve for x. The break-even points are the values of x that make the equation true.

Step-by-step explanation:

To find the break-even points, we need to determine the quantity of units produced (x) at which the company's total revenue is equal to its total cost.

The total revenue is calculated by multiplying the selling price per unit (1678 - 5/9x) by the quantity of units produced (x).

The total cost is calculated by adding the fixed costs ($40,800) to the variable cost per unit (4/9x + 444).

Setting the total revenue equal to the total cost and solving for x will give us the break-even points.