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)= 9000x +72,000
R(x)= 15,000x

Answer 1

12

Explanation:

15000x = 9000x +72000

6000x = 72000

x = 12

Answer 2

Answer: the number of units that must be sold to break even is 12

Explanation:

The cost function is expressed as

C(x)= 9000x +72000

The revenue function is expressed as

R(x) = 15000x

Profit = Revenue - cost

At the point of break even, the total revenue is equal to the total cost. This means that profit is zero. The expression becomes

Revenue - cost = 0

Revenue = cost

R(x) = C(x)

Therefore,

15000x = 9000x +72000

15000x - 9000x = 72000

6000x = 72000

x = 72000/6000

x = 12