Question

Given the cost function C(x) = 0.81x + 60, 420 and the revenue function R(x) = 1.87x, find the break-even point

Answer 1

x = 57,542.8571

Explanation:

C(x) = 0.81x + 60,420

R(x) = 1.87x

At break even point, Cost function and revenue function becomes equal.

-> C(x) = R(x)

-> 0.81x + 60,420 = 1.87x

-> 60420 = 1.87x - 0.82x

-> 60420 = 1.05x

-> x = 60420/1.05

-> x = 57,542.8571

Thus, at break even point x = 57,542.8571