document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1161073>Question 1161073</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A company makes plastic containers and sells them at R45 each. The cost of production consists of a fixed cost of R28 050 and a variable cost of R12 per container. Let X be the number of containers produced and sold.\r<BR>\n" );
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document.write( "Write down the income equation.\r<BR>\n" );
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document.write( "Write down the cost equation.\r<BR>\n" );
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document.write( "What is the profit equation?\r<BR>\n" );
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document.write( "Hence, find the break-even production level for this company.\r<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 #784503 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=784503\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> p = profit<BR>\n" );
document.write( "r = revenue<BR>\n" );
document.write( "c = cost<BR>\n" );
document.write( "x = number of units produced and sold<BR>\n" );
document.write( "breakeven is when revenue = cost<BR>\n" );
document.write( "r = 45 * x<BR>\n" );
document.write( "c = 28050 + 12 * x<BR>\n" );
document.write( "p = r minus c<BR>\n" );
document.write( "p = 45 * x - (28050 + 12 * x) which becomes:<BR>\n" );
document.write( "p = 45 * x - 28050 - 12 * x<BR>\n" );
document.write( "combine like terms to get:<BR>\n" );
document.write( "p = 33 * x - 28050<BR>\n" );
document.write( "breakeven is when r = c or when p = 0, depending on which equation you use to find it.<BR>\n" );
document.write( "when using r = c, breakeven is when 45 * x = 28050 + 12 * x<BR>\n" );
document.write( "subtract 12 * x from both sides of this equation to get:<BR>\n" );
document.write( "33 * x = 28050<BR>\n" );
document.write( "solve for x to get:<BR>\n" );
document.write( "x = 28050 / 33 = 850<BR>\n" );
document.write( "when using p = 0, breakeven is when p = 0<BR>\n" );
document.write( "p = 33 * x - 28050 becomes 0 = 33 * x - 28050<BR>\n" );
document.write( "add 28050 to both sides of this equation to get:<BR>\n" );
document.write( "28050 = 33 * x<BR>\n" );
document.write( "solve for x to get:<BR>\n" );
document.write( "x = 28050 / 33 = 850.<BR>\n" );
document.write( "breakeven is when 850 units are produced and sold.<BR>\n" );
document.write( "revenue = 45 * 850 = 38250<BR>\n" );
document.write( "cost = 28050 + 12 * 850 = 38250<BR>\n" );
document.write( "profit = revenue minus cost = 38250 - 38250 = 0.\r<BR>\n" );
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