SOLUTION: A company has two molds to form tires. One mold has a setup cost of $600 and the other setup cost of $1100. The cost to make each tire on the first machine is $15 and the cost per
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Question 666407: A company has two molds to form tires. One mold has a setup cost of $600 and the other setup cost of $1100. The cost to make each tire on the first machine is $15 and the cost per tire on the second machine is $13. Find the break point.
Answer by ReadingBoosters(3246) (Show Source): You can put this solution on YOUR website!
Mold 1
cost = 600 + 15x
Mold 2
cost = 1100 + 13x
...
600 + 15x = 1100 + 13x
Combine like terms
15x - 13x = 1100 - 600
2x = 500
Divide both sides by 2
where at 250 tires the plans are the same.
...
If x > 250 Mold 2 is cheaper
If x < 250 Mold 1 is cheaper
.....................
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