SOLUTION: Please help me to solve this problem. A manufacturer sells a product at $8.35 per unit, selling all produced. The fixed cost is $2116 and the variable cost is $7.20 per unit. At wh
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Question 461950: Please help me to solve this problem. A manufacturer sells a product at $8.35 per unit, selling all produced. The fixed cost is $2116 and the variable cost is $7.20 per unit. At what level of production will there be a profit of $4600? At what level of production will there be a loss of $1150? At what level of production will be the break even point occur? Answer by robertb(5830) (Show Source):
You can put this solution on YOUR website! The profit function is P(x) = 8.35x - (7.20x + 2116) = 1.15x - 2116.
Then 4600 = 1.15x - 2116 ==> 1.15x = 6716 ==> x = 5840 units.
-1150 = 1.15x - 2116 ==> 1.15x = 966 ==> x = 840 units.
0 = 1.15x - 2116 ==> 1.15x = 2116 ==> x = 1840 units.
