Question

Given the cost function C(x) and the revenue function R(x), find the number of units x that must be sold to break even,

C(x) = 15x + 48,000 and R(x) = 18x
How many units must be produced and sold in order to break even?
units

Answer 1

16,000 units

Steps:

given:

C(x) = 15x + 48,000

R(x) = 18x

15x + 48,000 = 18x

18x - 15x = 48,000

3x = 48,000

x = 48,000/3

x = 16,000

Check:

C(16,000) = 15×16,000 + 48,000 = 240,000 + 48,000 = 288,000

R(16,000) = 18×16,000 = 288,000