SOLUTION: It costs a company $3,500 to produce 3,000 pencils whereas it costs the company $1,500 a month even if they don't produce any pencils. If they sell the pencils for $0.75 and the co

Question 1131431: It costs a company $3,500 to produce 3,000 pencils whereas it costs the company $1,500 a month even if they don't produce any pencils. If they sell the pencils for $0.75 and the cost, revenue, and profit functions are known to be linear, determine how many pencils they must make in a month to break even.
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
Let = number of pencils they sell
Let = revenue
Let = cost
Let = profit
-------------------------

At the break even point,

---------------------

and

-----------------------

They must make 18,000 pencils/month
to break even

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