Question

Rebotar Inc.makes basketballs.Their fixed costs are $3,450.

Variable costs are $12per basketball.
if the basketball is priced at $25 and 300 basketballs are sold,did Rebotar break even?How do you know?Show all work.​

Answer 1

Since the profit is positive, Rebotar not only broke even, they had earnings.

Explanation:

Function Modeling

The costs, incomes, and profits of Rebotar Inc. can be modeled by means of the appropriate function according to known conditions of the market.

It's known their fixed costs are $3,450 and their variable costs are $12 per basketball produced and sold. Thus, the total cost of Rebotar is:

C(x) = 12x + 3,450

Where x is the number of basketballs sold.

It's also known each basketball is sold at $25, thus the revenue (income) function is:

R(x) = 25x

The profit function is the difference between the costs and revenue:

P(x) = 25x - (12x + 3,450)

Operating:

P(x) = 25x - 12x - 3,450

P(x) = 13x - 3,450

If x=300 basketballs are sold, the profits are:

P(300) = 13(300) - 3,450

P(300) = 3,900 - 3,450

P(300) = 450

Since the profit is positive, Rebotar not only broke even, they had earnings.