document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=831340>Question 831340</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You sell widgets. Your equipment costs you a total of $1000. Each widget costs $100 to make, and you sell it for $200.<BR>\n" );
document.write( "What is your revenue for selling X widgets?<BR>\n" );
document.write( "What is your cost for making X widgets?<BR>\n" );
document.write( "What is your profit for selling X widgets?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #501254 by </B><A HREF=/tutors/aboutme.mpl?userid=JulietG><B>JulietG(1812)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=JulietG><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=JulietG><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=501254\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Your fixed cost is $1000.  Whether you make 1 or 1,000,000 widgets, this doesn't change.  $100 * x is your variable cost.  It changes based upon how many widgets you make.<BR>\n" );
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document.write( "The formula, therefore, is:<BR>\n" );
document.write( "Cost of making x widgets = 1000 (fixed) + x*100<BR>\n" );
document.write( "Cost = 1000 + 100x<BR>\n" );
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document.write( "The revenue is the gross amount you take in.  Since each of them costs $200, it would be:<BR>\n" );
document.write( "Revenue = 200x<BR>\n" );
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document.write( "Your profit seems like a lot (100 on each item).  That's the case if you sell a lot.  But if you only sell a few, you'll be in the red due to your fixed cost.<BR>\n" );
document.write( "Profit = Revenue - Cost <BR>\n" );
document.write( "P = 200x - (1000+100x)<BR>\n" );
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document.write( "Let's see how this works in the real world.  <BR>\n" );
document.write( "If you see 10 widgets, your revenue is 10*200=2000<BR>\n" );
document.write( "Your cost would be 1000(fixed) + 10*100(variable) or 2000<BR>\n" );
document.write( "Profit = 0<BR>\n" );
document.write( "This is your break-even point.<BR>\n" );
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document.write( "However, if you have a great marketing department and a great product, let's say you sell 90.<BR>\n" );
document.write( "Revenue = 90*200 = 18000<BR>\n" );
document.write( "Cost would be 1000(fixed) + 90*100(variable), or 11000<BR>\n" );
document.write( "Profit = 7000<BR>\n" );
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