Question 184121: a company finds that if it produces and sells q units of a product, its total revenue in dollars is 100 q^2. if the variable cost per unit is 2 dollars and the fixed cost is 1200 dollars, find the value of q for which
total sales revenue= variable cost + fixed cost
( that is, profit is zero)
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! a company finds that if it produces and sells q units of a product, its total revenue in dollars is 100 q^2. if the variable cost per unit is 2 dollars and the fixed cost is 1200 dollars, find the value of q for which
total sales revenue= variable cost + fixed cost
-----------------------------------------------------
total revenue = 100q^2
variable cost + fixed cost = 2q + 1200
------------------------------------------
Equation:
100q^2 = 2q + 1200
100q^2 - 2q - 1200 = 0
50q^2 - q - 600 = 0
q = [1 +- sqrt(1 -4*50*-600)]/100
q = [1 +- sqrt(120001)]/100
q = [1 +- 346.41]/100
---------------------
Positive Solution:
q = (1+346.41)/100
q = $3.47
===========================
Cheers,
Stan H.
|
|
|
