document.write( "Question 56258: A company that manufactures bikes has a fixed cost of $100.00. It costs $100.00 to product each bike. The selling price per bike is $300.00\r
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Algebra.Com's Answer #38162 by Edwin McCravy(20056)\"\" \"About 
You can put this solution on YOUR website!
>A company that manufactures bikes has a fixed cost of $100.00. \r\n" );
document.write( "It costs $100.00 to product each bike. The selling price per bike\r\n" );
document.write( "is $300.00 \r\n" );
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document.write( "Are you sure you copied all those numbers right?  I doubt it. Wasn't\r\n" );
document.write( "the fixed cost more than $100, perhaps $10000 or more? Only $100 for\r\n" );
document.write( "fixed cost is awfully cheap.\r\n" );
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document.write( "But anyway, taking it as you have it:\r\n" );
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document.write( "1. write the cost function, C\r\n" );
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document.write( "Let x = the number of bikes bought and sold \r\n" );
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document.write( "Cost function = Cost for producing x bikes + Fixed cost\r\n" );
document.write( "       |                 |                       |  \r\n" );
document.write( "      C(x)    =        $100x               +   $100\r\n" );
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document.write( "         C(x) = 100x + 100 \r\n" );
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document.write( "2. write the revenue function, R\r\n" );
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document.write( "Revenue function = the money obtained from selling x bikes\r\n" );
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document.write( "       R(x)      =               $300x \r\n" );
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document.write( "         R(x) = 300x\r\n" );
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document.write( "3. determine the break-even point. Describe what this means.\r\n" );
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document.write( "This is the number of bikes, x, that must be sold to just break even,\r\n" );
document.write( "with no profit at all, and no loss at all.  This when the total amount\r\n" );
document.write( "spent to produce the bikes is exactly equal to the total amount taken\r\n" );
document.write( "in from the sales of the x bikes,  To find this we put C(x) equal to \r\n" );
document.write( "R(x), and solve for x\r\n" );
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document.write( "        C(x) = R(x)\r\n" );
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document.write( "  100x + 100 = 300x\r\n" );
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document.write( "Solve that and get x = .5, rounded up to 1 bike, the break even point. \r\n" );
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document.write( "So they only have to manufacture and sell one bike to more than break \r\n" );
document.write( "even. This is what is so unrealistic about the problem.  If the fixed \r\n" );
document.write( "cost were $10000 instead of a mere $100, then the break-even point would\r\n" );
document.write( "have been 50 bikes, which is more realistic than just one measly bike.\r\n" );
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document.write( "Edwin

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