SOLUTION: question 1048224 what is the liner profit equation and their break even level in a graph showing profit as a function of the number of units sold

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Question 1048913: question 1048224 what is the liner profit equation and their break even level in a graph showing profit as a function of the number of units sold
Answer by josgarithmetic(39617) About Me  (Show Source):
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Question 1048224: a company manufactures and sells bar stools. manufacturing costs consist of a fixed cost of R25 000 per month and a variable cost of R350 per unit. each unit is sold at R600.00.
determine the linear profit equation


Let x be number of units sold.

Cost, for a month, 25000%2B350x

Revenue, 600x

PROFIT, p, is Revenue minus Cost.
highlight%28p=600x-%2825000%2B350x%29%29
simplifiable into highlight%28highlight%28p=250x-25000%29%29.

Be aware, x is being used both for amount of units produced AND for amount of units sold. The equation only works well when amount sold and amount produced are the same.

Break-even point? When p=0.