Question

Over the next 5 years, a company projects its continuous flow of revenue to be

R(x)=70e^(.05x) thousands of dollars and it costs to be C(x)=0.4x^2+50 thousands of dollars, where x represents the number of years from now. Approximate, to the nearest dollar, the profit this company can expect to make over the next 5 years.

Answer 1

The Break Even point is the point at which the cost=revenue

14,980+20x=30x

14,980=10x

1,498=x

a. 1,498 units must be sold to break even. At $20 per unit, the dollar amount will be $29,960

b. The profit function is P(x)=R(x)-C(x)

So P(x)=30x-(14,980+20x)

If you want to solve for this equation just enter the value of x we found for the break even point to get the answer.