SOLUTION: Your business' fixed costs are $3,000/month. Your direct costs are $.50/widget. So, your cost equation is y=$.50x + 3000. If you sell your widgets for $2/widget, your revenue eq

Algebra ->  Graphs -> SOLUTION: Your business' fixed costs are $3,000/month. Your direct costs are $.50/widget. So, your cost equation is y=$.50x + 3000. If you sell your widgets for $2/widget, your revenue eq      Log On


   

Question 277031: Your business' fixed costs are $3,000/month. Your direct costs are $.50/widget. So, your cost equation is y=$.50x + 3000. If you sell your widgets for $2/widget, your revenue equation is y=$2x. For your business, graph your costs & revenues, and label your break-even point in terms of number of widgets and dollars.
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
cost equation is y = .5x + 3000

revenue equation is y = 2x

graph of these 2 equations is shown below:

graph+%281200%2C600%2C-1000%2C3000%2C-1000%2C5000%2C.5%2Ax+%2B+3000%2C2%2Ax%2C4000%29

Being able to draw this graph is a matter of using the right scale.

The break even point is when the cost equation equals the revenue equation.

that would be calculated as follows:

2x = .5x + 3000

subtract .5x from both sides of this equation to get:

1.5*x = 3000

divide both sides of this equation by 1.5 to get:

x = 2000

from the graph, you should be able to see that when x = 2000, y = 4000 and that the 2 equations intersect at that point.

I placed a horizontal line at y = 4000 so you could see it better.

you would need to trace a vertical line down from there to see that when y = 4000, x = 2000.

you can also see that from both equations.

let x = 2000 and y = 3000 + 1000 = 4000 from the cost equation.

let x = 2000 and y = 4000 from the revenue equation.

your y-intercept is 3000.

That's the value of y when x = 0.

from that you can see that your x value had to extend to some point above 2000 so you could see the point where the equations meet.

from that you can see that your y value had to extend to some point above 4000 in order to capture both the value of y when x = 0 and the value of y when the two equations meet.

to graph properly in algebra.com, you need to have the range of your x and y axis extend below 0 or the graph will not show up properly.