SOLUTION: A manufacturer has two machines available to stamp out a design. One machine has a setup cost of $720 and a cost per stamp of $3. The other machine has a setup cost of $300 and a c
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Question 850689: A manufacturer has two machines available to stamp out a design. One machine has a setup cost of $720 and a cost per stamp of $3. The other machine has a setup cost of $300 and a cost per stamped design of $5. Find the break even point for both stamped designs. Answer by JulietG(1812) (Show Source):
You can put this solution on YOUR website! For the first machine, the cost is:
720 + 3x
For the second machine, the cost is:
300 + 5x
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Are they wanting to know when the cost is the same? That's not exactly the "break even point".
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720 + 3x = 300 + 5x
Deduct 3x from each side.
720 = 300 +2x
Subtract 300 from each side.
420 = 2x
Divide each side by 2
210 = x.
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The cost is the same for 210 units. Fewer than 210 units and the second option is better. More than 210 units and the first option is better.
