Question

If the cost and revenue function for making x units are:C (x) =12x + 15,000R (x) = 32xIf that’s blurry the last part of the question is “then the break even point is:”

Answer 1

Step-by-step explanation

By definition:

• the number of units is x,

,

• the cost function C(x) = 12x + 15,000,

,

• the revenue function R(x) = 32x,

,

• the profit function P(x) = R(x) - C(x).

The break-even point is the point x where we have P(x) = 0. So we must find x such that:

`\begin{gathered} P(x)=R(x)-C(x)=0, \\ 32x-(12x+15,000)=0, \\ 20x-15,000=0, \\ x=(15,000)/(20)=750. \end{gathered}`

We have found that the break-even point is x = 750 units.

Answer

750 units