SOLUTION: A company manufacturing pencils has a fixed cost of $3,000 to buy a machine. It costs $0.10 to produce each pencil. Each pencil sells for $0.70. Write the cost function C(x).

Question 747321: A company manufacturing pencils has a fixed cost of $3,000 to buy a machine. It costs $0.10 to produce each pencil. Each pencil sells for $0.70.

Write the cost function C(x).
Write the revenue function R(x).
Find the break-even point and describe what this means.

Please help me solve this problems and each step in order to understand it.
Thank you in advance.
Answer by rothauserc(4718) (Show Source): You can put this solution on YOUR website!
Let x be the number of pencils produced
C(x) = 3000 + .10x
R(x) = (.70 - .10)x = .60x
Break even point = .60x = (3000 + .10x)
= .50x = 3000
and x = 6000 pencils need to be sold to break even

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