SOLUTION: If it costs $12,000 to start up a business and you get $7.20 per unit for a unit that costs $4.35 per unit to produce. Find the following: A) The total cost equation. B) The

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Question 669647: If it costs $12,000 to start up a business and you get $7.20 per unit for a unit that costs $4.35 per unit to produce. Find the following:
A) The total cost equation.
B) The number of units that you need to sell to make back your initial investment.
I am having trouble with this problem please help! Thank you!
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Hint:
The cost equation is C = 4.35x + 12000 (this is the cost to produce x units)

The revenue equation is R = 7.20x (this is how much you make -- excluding taxes, expenses, etc -- from selling x units)

The profit equation is

P = R - C

P = 7.20x - (4.35x + 12000)

If you want to find the break even point, plug in P = 0 and solve for x.