Question

ents A small company duplicates DVDs The cost of duplicating is $24 fixed overhead plus $0 70 per DVD duplicated The company generates revenues of $150 per DVD Use a graph to determine the break-even point for duplicating DVDs

Answer 1

For this case we can use the following operation to solve the problem

C= 24 + 0.70 x (Represent the cost function with x the number of DVD duplicated)

R= 150 represent the revenue

Then we can do this:

R= C

150= 24 +0.7x

And solving for x we got:

0.7x= 126

x = 126/0.7= 180

and then the solution for this case would be 180 units for the brak even point