SOLUTION: The Anderson Company produces a product for which the variable cost per unit is $6 and fixed cost is $8000. Each unit has a selling price of 10.5$.
• The least number of units t
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Question 1160487: The Anderson Company produces a product for which the variable cost per unit is $6 and fixed cost is $8000. Each unit has a selling price of 10.5$.
• The least number of units that must be sold for the company to earn a profit
• The number of units that must be sold for the company to get the break even
• If the selling price equal the variable cost equal 8 $ then the number of units must be sold for the company to earn a profit of $800000
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
The profit as a function of the number of units sold, 
, is )
and is equal to the difference between revenue as a function of , )
, and cost as a function of :
\ =\ R(x)\ -\ C(x))
In this problem, your revenue function is:
\ =\ 10.5x)
The cost function is:
\ =\ 6x\ +\ 8000)
"Break even" means you make zero profit, i.e., no gain, and no loss. So in order to solve the second question, you have to solve:
\ =\ 0)
If this has an integer solution, then you have an exact answer for the break-even point. But if you don't have an integer solution, you need to round your answer to the next higher whole number. That is because rounding down will result in a small loss whereas rounding up gives you a small gain, and you have to meet or exceed break-even in this case.
In the case of obtaining an integer solution, you need to add one to the answer to get the answer to question 1. If no integer solution, then the answer to the first two questions is the same.
For the third question solve:
\ =\ 800000)
John
My calculator said it, I believe it, that settles it
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