document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=480496>Question 480496</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Assume that a company has total annual fixed costs of $480,000 and that variable costs is $6 per unit.  If each unit sells for $10, then each unit exceeds the specific variable costs by $4. <BR>\n" );
document.write( "a.  What is the cost function? <BR>\n" );
document.write( "b.  What is the revenue function? <BR>\n" );
document.write( "c.  How many units must be sold in order for the company to break-even?<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #329050 by </B><A HREF=/tutors/aboutme.mpl?userid=nerdybill><B>nerdybill(7384)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=nerdybill><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=nerdybill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=329050\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Assume that a company has total annual fixed costs of $480,000 and that variable costs is $6 per unit. If each unit sells for $10, then each unit exceeds the specific variable costs by $4. <BR>\n" );
document.write( "a. What is the cost function? <BR>\n" );
document.write( "C(x) = 6x + 480000<BR>\n" );
document.write( "b. What is the revenue function? <BR>\n" );
document.write( "R(x) = 10x<BR>\n" );
document.write( "c. How many units must be sold in order for the company to break-even?<BR>\n" );
document.write( "set<BR>\n" );
document.write( "R(x) = C(x)<BR>\n" );
document.write( "10x = 6x + 480000<BR>\n" );
document.write( "4x = 480000<BR>\n" );
document.write( "x = 120,000 units<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );