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Business and finance. The cost of producing a number of items x is given by C = mx + b, in which b is the fixed cost and m is the variable cost (the cost of producing one more item).
(a) If the fixed cost is $40 and the variable cost is $10, write the cost equation.
This is what I came up for this part.
C = 10x + 40
b) Graph the cost equation.
(c) The revenue generated from the sale of x items is given by R = 50x. Graph the revenue equation on the same set of axes as the cost equation.
(d) How many items must be produced for the revenue to equal the cost (the break-even point)?
50x = 10x+40
x= 1 (number of items that must be produced to break even)