SOLUTION: Business and finance. The cost of producing a number of items x is given by
C = mx+b, in which b is the fixed cost and m is the variable cost (the cost of
producing one more item
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-> SOLUTION: Business and finance. The cost of producing a number of items x is given by
C = mx+b, in which b is the fixed cost and m is the variable cost (the cost of
producing one more item
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Question 67313: Business and finance. The cost of producing a number of items x is given by
C = mx+b, in which b is the fixed cost and m is the variable cost (the cost of
producing one more item).
(a) If the fixed cost is $40 and the variable cost is $10, write the cost equation.
(b) Graph the cost equation.
I know A and B I need help with c and d
c) The revenue generated from the sale of x items is given by R=50x. Graph the
revenue equation on the same set of axes as the cost equation.
(d) How many items must be produced for the revenue to equal the cost (the
break-even point)? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Business and finance. The cost of producing a number of items x is given by
C = mx+b, in which b is the fixed cost and m is the variable cost (the cost of
producing one more item).
(a) If the fixed cost is $40 and the variable cost is $10, write the cost equation.
C(x)=10x+40
(b) Graph the cost equation.
I know A and B I need help with c and d
c) The revenue generated from the sale of x items is given by R=50x.
Graph the revenue equation on the same set of axes as the cost equation.
(d) How many items must be produced for the revenue to equal the cost (the
break-even point)?
Break even occurs when Cost = Revenue
10x+40=50x
10x=40
x=4 (break even occurs when 4 items are produced)
Cheers,
Stan H.
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