SOLUTION: a company markets exercise dvds that sell for 24.95, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $36,270 and the variable costs (material

Question 1142264: a company markets exercise dvds that sell for 24.95, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $36,270 and the variable costs (materials, shipping, etc.) are $5.45 per dvd.
A) find the cost equation and the revenue equation.
b) how many dvds must be sold each month for the company to break even?
C) Graph the cost and revenue in the same coordinates system and show the break even point.
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
a company markets exercise dvds that sell for 24.95, including shipping and handling.
The monthly fixed costs (advertising, rent, etc.) are $36,270 and the variable costs (materials, shipping, etc.) are $5.45 per dvd.
:
let x = no. of dvd's
A) find the cost equation and the revenue equation.
C(x) = 5.45x + 36270; and R(x) = 24.95x
:
b) how many dvds must be sold each month for the company to break even?
Revenue = Cost
24.95x = 5.45x + 36270
24.95x - 5.45x = 36270
19.50x = 36270
x = 36270/19.5
x = 1860 dvd's to break even
:
C) Graph the cost and revenue in the same coordinates system and show the break even point.

breakeven, x=1860, y=46407
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