Question

A company makes and sells flags with various seasonal themes. It costs $12 to manufacture each flag, and there is a set-up cost of $200 for a new design. The company sells the flags to home improvement stores for $20 per flag. What is the break-even point for making and selling flags? ​

Answer 1

$500

Explanation:

y: $

x: flag

Cost Function: f(x) = 12x+200

Profit Function: h(x) = 20x

The break-even point is located at (25, 500) on the graph where both functions intercept.