SOLUTION: A manufacturer produces items and sells them for $2 per item. It costs $42 to make 32 items and the daily operational overhead is $45.00.
a) Graph the cost and revenue functions
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Question 1037818: A manufacturer produces items and sells them for $2 per item. It costs $42 to make 32 items and the daily operational overhead is $45.00.
a) Graph the cost and revenue functions on the same set of axes.
b) Find the break-even point using algebra not the graph.
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
A manufacturer produces items and sells them for $2 per item.
It costs $42 to make 32 items and the daily operational overhead is $45.00.
:
Find the cost to make each individual item
= $1.3125
x = no. of items made
Cost
C(x) = 1.3125x + 45 (Red)
Revenue
R(x) = 2x (green)
:
(a) Graph the cost and revenue functions on the same set of axes.
:
b) Find the break-even point using algebra not the graph.
Rev = Cost
2x = 1.3125x + 45
2x - 1.3125x = 45
.6875x = 45
x = 45/.6875
x = 65.46 ~ 66 items to at least break even
:
Confirm
2(66) = $132 (Blue line)
1.3125(66) + 45 = $131.63
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