document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1142374>Question 1142374</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help me solve this\r<BR>\n" );
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document.write( "A manufacturer produces T  -  shirts at a cost of R10 per T  -  shirt. Suppose we draw two graphs plotting<BR>\n" );
document.write( "production cost and income (in rands) against the number of T  -  shirts produced and sold. Suppose<BR>\n" );
document.write( "the break  -  even point is (50, 1 000).<BR>\n" );
document.write( "Which of the following statements is / are true? (Assume that the cost and profit functions are linear.)\r<BR>\n" );
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document.write( "A. The manufacturer will make a profit if he sells 50 T  -  shirts.<BR>\n" );
document.write( "B. The fixed daily cost is R500.<BR>\n" );
document.write( "C. The manufacturer sells the T  -  shirts at R25 per T  -  shirt.\r<BR>\n" );
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document.write( "1. Only A <BR>\n" );
document.write( "2. Only B <BR>\n" );
document.write( "3. Only C<BR>\n" );
document.write( "4. Only A and B <BR>\n" );
document.write( "5. Only B and C<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 #763190 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=763190\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the cost equation is y = 10 * x + F<BR>\n" );
document.write( "y is the total cost.<BR>\n" );
document.write( "F is the fixed cost.<BR>\n" );
document.write( "x is the number of shirts produced and sold.\r<BR>\n" );
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document.write( "break-even point is (50,1000) means that the break-even point is when 50 shirts are produced and sold and the revenue is equal to the cost.\r<BR>\n" );
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document.write( "at the break-even point, y is equal to the revenue and is also equal to the cost.\r<BR>\n" );
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document.write( "at the break-even point, y is equal to 1000.\r<BR>\n" );
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document.write( "at the break-even point, the cost equation becomes 1000 = 10 * 50 + F.<BR>\n" );
document.write( "solve for F to get F = 500.\r<BR>\n" );
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document.write( "the revenue equation is y = P * x.\r<BR>\n" );
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document.write( "y is the revenue.<BR>\n" );
document.write( "P is the sale price per shirt.<BR>\n" );
document.write( "x is the number of shirts sold.\r<BR>\n" );
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document.write( "at the break-even point, the revenue equation becomes 1000 = P * 50.<BR>\n" );
document.write( "solve for P to get P = 20.\r<BR>\n" );
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document.write( "your three statements are:\r<BR>\n" );
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document.write( "A. The manufacturer will make a profit if he sells 50 T - shirts.<BR>\n" );
document.write( "B. The fixed daily cost is R500.<BR>\n" );
document.write( "C. The manufacturer sells the T - shirts at R25 per T - shirt.\r<BR>\n" );
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document.write( "A is false because the manufacturer will only make a profit if the manufacturer sells MORE THAN 50 shirts.<BR>\n" );
document.write( "at 50 shirts, themanufacturer breaks even.<BR>\n" );
document.write( "this means he neither takes a loss or a profit.<BR>\n" );
document.write( "the loss is 0.<BR>\n" );
document.write( "the profit is 0.\r<BR>\n" );
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document.write( "B is true.\r<BR>\n" );
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document.write( "C is false because the sale price per shirt is 20.\r<BR>\n" );
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