SOLUTION: A company that manufactures running shoes has a fixed cost of $10,000. Additionally, it costs $10 to produce each pair of shoes. they are sold at $30 per pair. what is the break-ev

Algebra ->  Coordinate Systems and Linear Equations -> SOLUTION: A company that manufactures running shoes has a fixed cost of $10,000. Additionally, it costs $10 to produce each pair of shoes. they are sold at $30 per pair. what is the break-ev      Log On


   

Question 969468: A company that manufactures running shoes has a fixed cost of $10,000. Additionally, it costs $10 to produce each pair of shoes. they are sold at $30 per pair. what is the break-even point? please show work.
a. (1,200, $36,000)
b. (1,500, $45,000)
c. (1,000, $30,000)
d. (500, $15,000)
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
D is correct.
Cost equation is y=10,000 + 10x where x is the number of pair of shoes.
Revenue equation is y=30 x
Set them equal
30x=10000 + 10x
20x=10,000
x=500 pair of shoes.
Break even point at $500*30=$15,000 OR 10,000 + 500*10=$15,000


graph+%28300%2C200%2C-50%2C1000%2C-100%2C+20000%2C10x%2B10000%2C30x%29 This shows the break even point at $15,000. Green line is revenue; Red line is cost.