Question

The planning department of Abstract Office Supplies has been asked to determine whether the company should introduce a new computer desk next year. The department estimates that bsp $ 14 comma 000 of new manufacturing equipment will need to be purchased and that the cost of constructing each desk will be $ 150. The department also estimates that the revenue from each desk will be $ 500.

Answer 1

The complete question is to: Find the company's break-even point for the desk.

Answer: 400 desks to break-even.

Explanation:

Let's let x = the number of desks.

Therefore:

k(x) = 150x + 14 000 and;

q(x) = 500x

In conclusion:

k(x) = q(x)

150x + 14 000 = 500x

14 000 = 350x

400 = x

400 desks should be sold for the company to break-even