Question

given the cost function C(x)=0.76x+77,700 and the revenue function R(x)=1.81x find the break even point the intersection is________

Answer 1

To answer this problem we have to remember that the break even point occur where the revenue function and the cost function have the same value.

Then, this happens when

`C(x)=R(x)`

Pluggin the expressions of our functions and solving for x we have:

`\begin{gathered} 0.76x+77700=1.81x \\ 77700=1.81x-0.76x \\ 77700=1.05x \\ x=(77700)/(1.05) \\ x=74000 \end{gathered}`

Therefore the break even point occurs when x=74000. In this points both functions have value

`\begin{gathered} C(74000)=133940 \\ R(74000)=133940 \end{gathered}`