document.write( "Question 1099526: A manufacturer sells a product for $10 per unit. The manufacturer’s fixed costs are $1200 per month, and the variable costs are $2.50 per unit.
\n" ); document.write( "a) How many units must the manufacturer produce each month to break even?
\n" ); document.write( "b) Find the profit function for the manufacturer.
\n" ); document.write( "c) Graphtheprofitfunctionshowingclearlytheprofitandlossregions.
\n" ); document.write( "

Algebra.Com's Answer #714062 by ankor@dixie-net.com(22740)\"\" \"About 
You can put this solution on YOUR website!
A manufacturer sells a product for $10 per unit.
\n" ); document.write( " The manufacturer’s fixed costs are $1200 per month, and the variable costs are $2.50 per unit.
\n" ); document.write( " a) How many units must the manufacturer produce each month to break even?
\n" ); document.write( "Break even occurs when revenue = total cost
\n" ); document.write( "let x = no. of units
\n" ); document.write( "10x = 2.5x + 1200
\n" ); document.write( "10x - 2.5x = 1200
\n" ); document.write( "7.5x = 1200
\n" ); document.write( "x = 1200/7.5
\n" ); document.write( "x = 160 units have to be sold in 1 month to break even
\n" ); document.write( ":
\n" ); document.write( " b) Find the profit function for the manufacturer.
\n" ); document.write( "p(x) = 10x - (2.5x+1200)
\n" ); document.write( ":
\n" ); document.write( " c) Graphtheprofitfunctionshowingclearlytheprofitandlossregions
\n" ); document.write( "\"+graph%28+300%2C+200%2C+-100%2C+500%2C+-500%2C+3000%2C+2.5x%2B1200%2C+10x%29+\"
\n" ); document.write( "Red is cost, green is revenue, intersect is break even point
\n" ); document.write( "Profit area is above the red and to the right of green
\n" ); document.write( "
\n" );