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Question 151331: The cost of producing each copy of a travel guide is $0.95. It is sold to travel agents for $0.90 each, and the amount received for advertising is 10% of the amount received for all guides sold beyond 12,000. Find the fewest number of travel guides that must be produced and sold to break even
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The cost of producing each copy of a travel guide is $0.95.
It is sold to travel agents for $0.90 each, and the amount received for advertising is 10% of the amount received for all guides sold beyond 12,000. Find the fewest number of travel guides that must be produced and sold to break even.
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Let "x" be the number of guides produced.
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Production cost(x) = 0.95x
Income(x) = 0.90x + (x-12000)0.10x
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Breaking Even:
Production cost = Income
0.95x = 0.90x + 0.10(x^2-12000x)
0.05x = 0.10x^2 - 1200x
10x^2-5x-120000x = 0
10x^2 -12005x = 0
x(10x - 12005) = 0
x = 0 or x = 1200.5 (break even number of guides)
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Cheers,
Stan Hanson
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