SOLUTION: Suppose Dan’s Pizza Parlor has a fixed cost of $280 and it costs $4 to produce each pizza. Dan sells every pizza for $12. The Revenue Function is: R(x) = 12x The Cost Function

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: Suppose Dan’s Pizza Parlor has a fixed cost of $280 and it costs $4 to produce each pizza. Dan sells every pizza for $12. The Revenue Function is: R(x) = 12x The Cost Function       Log On


   

Question 1081107: Suppose Dan’s Pizza Parlor has a fixed cost of $280 and it costs $4 to produce each pizza. Dan sells every pizza for $12.
The Revenue Function is: R(x) = 12x
The Cost Function is: C(x) = 280 + 4x
The break-even point occurs where the graphs of C and R intersect. Therefore, we can find this point by solving the system:
y =12x
y = 280 + 4x
How many pizzas does Dan have to produce to break-even? If he exceeds his break-even point, will he make a profit or have a loss?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
true 12x=280+4x
8x=280
x=$35, and which point R=C=$420.
Try x=20 to see what happens.
Revenue is $700
Cost=280+$140=$420.
He will make a profit. This could also be seen by the fact as x increases, it favors the revenue function with 12x, rather than the cost function with 4x.