Question

The revenue equation for a certain brand of toothpaste is y = 2.2x, where x is the number of tubes of toothpaste sold andy is the total income for selling x tubes. The cost equation is y = 0.6x + 2000, where x is the number of tubes of toothpastemanufactured and y is the cost of producing x tubes. The following set of axes shows the graph of the cost and revenueequations. For what x-values will the company make a profit?

Answer 1

step 1

equate the revenue and the cost

so'

2.2x=0.6x+2000

solve for x

2.2x-0.6x=2000

1.6x=2000

x=1,250

step 2

the company will make a profit when the revenue is greater than the cost

therefore

the value of x must be greater than 1,250

x> 1,250 tubes of toothpaste

Note: For x=1,250 ----> the revenue is equal to the cost (Profit 0)