SOLUTION: A coffee powder manufacturer works out the variable cost of each kilogram of coffee powder is $2.50 with a fixed cost of $30. He sells it to his distributors at price of $3 per kil
Question 476963: A coffee powder manufacturer works out the variable cost of each kilogram of coffee powder is $2.50 with a fixed cost of $30. He sells it to his distributors at price of $3 per kilogram.
a) If the amount of coffee powder is x kg,in the answer sheet, write the cost function (C) and the revenue (R) for the manufacturer.
b)What is the breakeven point for the manufacturer? Found 2 solutions by Theo, josmiceli:Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! x = number of units sold
cost is equal to 30 + 2.50x
sale price is 3x
c = 2.50x + 30
r = 3x
break even point is when the cost function equals the revenue function.
2.5x + 30 = 3x
subtract 2.5x from both sides of this equation to get:
3x - 2.5x = 30 which becomes:
.5x = 30
divide both sides of this equation by .5 to get:
x = 60
that's the break even point.
cost = 2.5*60 + 30 = 180
revenue = 3*60 = 180
You can put this solution on YOUR website! Let = number of kilograms of coffee powder sold
(a)
(b)
The breakeven point is where kg of coffee powder sold
